US Sanctions on Iran Send Oil Prices Soaring to Near One-Month High

Crude oil prices surged to near one-month highs as the US prepares to impose sweeping sanctions on Iran. The move is aimed at isolating the country economically, following Tehran's refusal to back down from its demands for the US to end its blockade of Iranian ports and other conditions before reopening the Strait of Hormuz.

Brent crude rose by nearly $3 to around $92 a barrel, hitting its highest since July 22, while US benchmark West Texas Intermediate (WTI) crude jumped 3.3% to $86.72 a barrel in Thursday's trade.

Treasury Secretary Steven Mnuchin threatened secondary sanctions against countries and companies that continue to conduct business with Iran, saying it was time for US allies to decide where they stand on the issue. President Donald Trump also warned that any country doing business with Iran or providing financial assistance would face 'tremendous' consequences.

The possibility of sweeping economic sanctions comes as China and India are major buyers of Iranian oil, although Mnuchin did not name either country directly. Meanwhile, the UAE has announced a suspension of financial and economic transactions with Iran after accusing Tehran of launching ballistic missiles at its territory.