Oil prices rise for a second week amid the threat of new US sanctions
Kyiv • UNN
Brent and WTI rose amid the threat of tougher U.S. sanctions against Iran. Twice as few vessels passed through the Strait of Hormuz.
Oil prices rose slightly on Friday and appear set to gain for a second straight week after the United States threatened to impose the "toughest sanctions in history," amid ongoing disruptions to Middle Eastern oil supplies, Reuters reports, writes UNN.
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Brent crude futures rose 19 cents, or 0.20%, to $93.97 a barrel by 12:02 GMT (15:02 Kyiv time). U.S. West Texas Intermediate crude rose 14 cents, or 0.16%, to $86.97.
The Brent benchmark rose more than 6.1%, while WTI gained 5.4% this week, reaching its highest levels since July 24 in the previous session.
Oil prices reached their highest level since July18.08.26, 14:57 • 4233 views
"The U.S. is taking a very tough stance toward Iran, the blockade has been reinstated, and there are threats of tougher sanctions on Iranian oil exports, so we are seeing oil prices rise above $90 a barrel again," said ANZ analyst Soni Kumari.
On Friday, Iran said its response to any new threats from the United States would be "devastating" after Washington promised to impose the toughest financial sanctions in history with the aim of overthrowing Iran's leadership, the publication writes.
"The immediate impact on supplies may be limited, as Iranian exports are already severely restricted by the U.S. naval blockade," said Crispus Nyaga, a research analyst at Empire FX.
"However, an increase in the number of incidents involving vessels and retaliatory measures in response to economic sanctions could worsen the current situation at a time when traffic through the Strait of Hormuz remains significantly below normal levels," he added.
Oil prices rose amid concerns about supply cuts by major oil-producing countries such as Saudi Arabia, Iraq, the United Arab Emirates and Kuwait.
The current peace agreement between the United States and Iran ended this week, and neither side made any attempt to resume negotiations, the publication notes.
Offers of Iranian oil to Chinese buyers have declined, while prices jumped this week as the U.S. blockade curbs supplies from Iran and the threat of new sanctions from Washington looms, trading sources said.
On Thursday, seven vessels carrying commodities passed through the Strait of Hormuz, only half the number of vessels that passed through the day before, shipping company Kpler's data showed.
Before the start of the U.S.-Israeli attacks on Iran in late February, approximately one-fifth of the world's oil and liquefied natural gas supplies passed through the Strait of Hormuz. As the six-month mark of the war approaches, disruptions to energy supplies through this waterway persist.
Meanwhile, the publication writes, a Russian oil refinery in the city of Perm, located more than 1,600 km from the Ukrainian border, was struck.