Oil prices were little changed on Friday, holding near one-month highs as markets reacted to fresh U.S. threats of tougher economic sanctions against Iran.
Brent crude and West Texas Intermediate remained supported by persistent geopolitical risks surrounding the Strait of Hormuz and concerns over potential disruptions to global oil supplies.
Brent Crude Holds Near $94
Brent crude futures, the global benchmark for oil prices, rose around 0.2% to $93.98 per barrel.
Meanwhile, U.S. West Texas Intermediate crude futures gained roughly 0.1% to $86.89 per barrel.
Both contracts remained close to recent highs as investors continued to monitor developments in the Middle East.
Oil Heads for Second Straight Weekly Gain
Crude oil was on course to post a second consecutive week of gains.
Brent was heading toward a weekly increase of more than 5%, supported by the ongoing dispute between the United States and Iran.
The standoff surrounding the Strait of Hormuz has shown few signs of easing, keeping supply risks firmly in focus.
Trump Threatens Tougher Sanctions on Iran
U.S. President Donald Trump has threatened to introduce strict new economic sanctions against Iran.
The measures are intended to pressure Tehran into accepting a peace agreement.
Trump also warned that countries continuing to conduct business with Iran could face serious economic consequences.
Those comments added to market concerns that the conflict could continue to affect energy exports and regional trade.
U.S. Treasury Promises Strongest Sanctions Yet
U.S. Treasury Secretary Scott Bessent reinforced the administration’s position on Thursday.
He said Iran could face what he described as the toughest sanctions imposed so far.
However, it remains unclear what additional restrictions Washington could introduce.
The United States already maintains extensive sanctions targeting Iranian oil exports and other parts of the country’s economy.
Iran and China Push Back Against U.S. Pressure
Iran has largely dismissed the latest U.S. threats.
China has also shown limited willingness to respond to Washington’s pressure.
This is particularly significant because China remains one of the largest buyers of Iranian crude oil.
As a result, markets are watching closely to see whether any new sanctions would meaningfully reduce Iranian oil exports.
Strait of Hormuz Remains a Key Supply Risk
The United States has also maintained its naval blockade against Iran, which was introduced earlier this year.
Meanwhile, commercial shipping through the Strait of Hormuz remains well below levels seen before the conflict.
The waterway is one of the most important routes for global oil transportation and has become a major source of uncertainty for energy markets.
Shipping Traffic Remains Severely Disrupted
Shipping data indicates that commercial traffic through the Strait of Hormuz continues to operate at only a fraction of normal levels.
This contrasts with claims from U.S. officials that conditions have improved.
Iran has suggested that it intends to keep the strategic waterway effectively restricted until the United States complies with the terms of an interim peace agreement that has since expired.
Energy Shock Fears Continue to Support Oil
The continued geopolitical uncertainty is keeping concerns about a potential energy shock alive.
Analysts at Deutsche Bank said worries about energy supply disruptions continue to affect global financial markets.
Any further reduction in oil flows from the Persian Gulf could tighten supply and place additional upward pressure on crude prices.
Oil Market Outlook Remains Tied to Middle East Risks
Oil prices remain heavily influenced by developments between the United States and Iran.
The threat of stronger sanctions, reduced shipping activity through the Strait of Hormuz and continued political tensions are all supporting crude prices.
Unless tensions ease or regional supply conditions improve, oil prices could remain elevated and volatile in the near term.
