US-Iran Sanctions Tensions Drive Oil Prices Higher
Oil prices rose slightly on Tuesday as markets waited to see how wider US sanctions against Iran would play out. The US announced new sanctions against 60 entities and individuals associated with Iran, but stopped short of imposing penalties on any particular countries.
The list of 60 entities did not include any Chinese entities suspected of facilitating Iran's oil trade. China is a major buyer of Iranian oil, but Washington has criticized its purchases without directly targeting Chinese banks.
Iran signaled it was ready to retaliate to the measures, having earlier indicated that the country will further disrupt oil flows through the Middle East in response to US aggression.
The new US sanctions represent a shift towards economic pressure over military aggression against Iran. However, given that the country has remained subject to strict US sanctions for several decades running, it remains unclear how much progress the new measures will yield.