US Sanctions on Iran Fail to Disrupt Oil Prices
Oil prices have resumed their upward trend after a decline of over 2% in the previous trading session. The US has expanded its sanctions against Iran, but market players are viewing these efforts as insignificant rather than market-moving.
The US Treasury Secretary, Scott Bessent, announced increased sanctions pressure on Iran, aiming to cut off the country's 'economic artery' and end the war. He warned that countries maintaining business ties with Tehran could lose access to the US dollar-based financial system.
However, market players seem unfazed by these measures, with oil prices rising modestly. October Brent crude futures rose by 27 cents, or 0.3%, to $92.44 per barrel, while U.S. West Texas Intermediate crude gained 37 cents, or 0.4%, to $85.38 per barrel.
ING commodities strategists view the US attempts to discourage partners from trading with Iran as insignificant rather than market-moving. The previous day's sharp decline in oil prices was due to investors factoring in the risk of disruptions to oil supplies from the Middle East.