Oil prices are poised for a sharp weekly rise as the United States prepares to announce fresh economic measures against Iran, increasing concerns that further restrictions could worsen disruptions in global energy supplies.
Brent crude traded above $93 a barrel on Friday and was heading towards a weekly gain of more than 5%. West Texas Intermediate (WTI) for October delivery eased towards $86 a barrel but remained on course for a fifth consecutive weekly advance.
US prepares tougher measures against Iran
The latest rally in crude prices comes as Washington prepares to increase economic pressure on Tehran. US Treasury Secretary Scott Bessent said details of the new measures would be announced on Monday, following President Donald Trump's description of the planned action as an “economic D-day.”
The measures are expected to target Iran and could also affect countries continuing to trade with Tehran, including China.
Oil prices have risen more than 50% this year amid the wider US-Iran conflict and its impact on energy supplies across the Middle East. The situation has raised particular concerns over shipping through the Strait of Hormuz, a critical route for global oil and gas trade.
Bessent said Washington controls the waterway and that vessels could use a southern route to exit the region.
Iranian oil flows face mounting pressure
China, the world's largest buyer of Iranian crude, has opposed Washington's approach, arguing that sanctions and economic pressure will not resolve the conflict and calling for negotiations.
Meanwhile, pressure on Iran's oil exports has intensified. The US has maintained a naval blockade around Iranian ports, while Iranian Central Bank Governor Abdolnaser Hemmati said the country's oil flows had “virtually stopped”.
The supply impact is particularly visible in diesel markets, where prices have increased more rapidly than crude.
Any additional restrictions on Iranian exports or disruptions to shipping through Hormuz could therefore intensify pressure on global fuel markets.
With the global energy market already facing supply constraints, investors are closely monitoring US-Iran tensions for signs of further escalation and its potential impact on crude and fuel prices.
