Trump's Sanctions Threat Sends Oil Prices Soaring
Oil prices rose on Friday after US President Donald Trump threatened economic sanctions on Iran's trading partners, raising expectations of tighter supply in the coming weeks.
The international benchmark Brent crude futures settled at $94.39 a barrel, up 61 cents or 0.65 percent. The US West Texas Intermediate crude settled at $87.06 a barrel, up 23 cents or 0.26 percent.
According to Crispus Nyaga, research analyst at Empire FX, the immediate impact on supply may be limited as Iranian exports are already heavily constrained by the US naval blockade.
However, Phil Flynn, senior analyst with Price Futures Group, said that workarounds and alternative supplies are being found while Hormuz remains constrained. 'Hormuz is still a problem, but it is no longer the only story,' Flynn said in a morning note.