US Sanctions Threat Sends Oil Prices Soaring Again
Oil prices rose on Friday for a second straight week due to ongoing disruptions in Middle Eastern oil supplies and the threat of new US sanctions against Iran.
The Brent crude futures price increased by 19 cents, or 0.20%, to $93.97 a barrel, while U.S. West Texas Intermediate crude rose by 14 cents, or 0.16%, to $86.97.
Analysts point to the US's tough stance on Iran as a key factor driving oil prices higher. The US has threatened to impose 'toughest sanctions in history' on Iranian oil exports, which could further restrict already severely limited supplies.
Despite some analysts cautioning that the immediate impact of these sanctions may be limited, others warn that an increase in incidents involving vessels and retaliatory measures could worsen the current situation, particularly given the ongoing disruptions to traffic through the Strait of Hormuz.