Oil prices rose during trading on Thursday. It was caused by concerns about supply disruptions after the US imposed new sanctions on oil exports from Iran, UNN writes with reference to Investing.
Details
As of now, Brent crude futures, which expire in June, rose 0.4% to $66.10 a barrel, while West Texas Intermediate (WTI) crude futures rose 0.5% to $62.13 a barrel.
On Wednesday, both contracts rose by more than 2%, reaching a two-week high after a recent price decline.
US pressure on Iran
This comes against the backdrop of the US President Donald Trump's administration stepping up its sanctions against Iran's oil sector, targeting Chinese enterprises, including "teapot refineries" in Shandong province. "Teapot refinery" is an industry nickname for small, independent refineries. They are mostly located in China.
The US has tightened sanctions against Iran, targeting Chinese oil refiners17.04.25, 03:23
These measures are part of President Trump's renewed "maximum pressure" campaign aimed at reducing Iran's oil exports to zero and curbing its nuclear ambitions.
The sanctions also target several companies and vessels that facilitate the transportation of Iranian oil through the so-called "shadow fleet". The US actions coincide with ongoing nuclear talks between the US and Iran. Recent talks took place in Oman, and future discussions are planned in Rome.
Meanwhile, China has said it is open to resuming trade talks with the Trump administration, but seeks more respect from Washington. China wants a more consistent US position on trade and discussions on issues such as sanctions and Taiwan.
Addition
Prices for oil previously fell sharply, reaching the lowest level since February 2021. The reason was concerns about falling demand amid the aggravation of the trade war between the US and China, as well as the prospect of increased supply in the market.