US Pressure on Iran Sends Oil Prices Soaring

Oil prices surged to a fifth consecutive day of gains amid escalating US pressure on Iran. The White House announced measures to intensify economic sanctions, prompting President Donald Trump to warn of tougher penalties for entities supporting Iranian economic activities.

This comes as the Energy Information Administration (EIA) reported a surprise increase in US commercial crude oil inventories by 4.4 million barrels to 428.8 million barrels, marking a third consecutive weekly build and the highest level since May.

The EIA's data showed that despite strong export demand and lower imports, domestic supply drove the stock build. Crude exports rose by 1.01 million barrels per day (b/d) week-on-week to 4.07 million b/d, while imports fell by 746k b/d to 6.59 million b/d.

In related news, the Strategic Petroleum Reserve fell by 5.3 million barrels, leaving total US crude oil inventories down by a modest 0.9 million barrels.