Oil prices climbed on Monday as markets assessed the impact of fresh U.S. sanctions against Iran, announced the previous day. Brent crude futures rose 1.9% to $90.38 per barrel by 05:53 Brasília time, while U.S. WTI crude futures fell 2.0% to $83.25, operating near a one-week low. Both benchmarks had closed the prior session with declines exceeding 2%.
The U.S. sanctions, unveiled on Monday, target 60 entities and individuals linked to Iran, warning against maintaining economic ties with Tehran. Washington did not impose immediate penalties or specify an enforcement timeline. The list excluded entities from China, the largest buyer of Iranian energy. Analysts noted the measures were unlikely to significantly disrupt oil markets, with ING stating that traders viewed the U.S. effort to isolate Iran as marginal rather than a market-moving factor.
Traffic through the Strait of Hormuz, a critical chokepoint for global oil and LNG shipments, remained severely constrained. Only one cargo vessel crossed the strait on Monday, the lowest daily volume since May 7, down from pre-war levels where about one-fifth of global oil and LNG transited the route. The decline follows the collapse of a June Memorandum of Understanding aimed at pausing hostilities, after attacks on oil tankers in the strait derailed efforts toward a lasting cease-fire.
Pakistan’s Interior Minister Mohsin Naqvi reported progress in discussions with Iranian authorities, suggesting potential for restoring a provisional cease-fire agreement. Naqvi stated the Iranian president had shared his government’s perspective during a constructive exchange. ANZ analysts cautioned that while the U.S. campaign to isolate Iran was framed as unprecedented, the lack of a specific timeline for enforcement limited its immediate impact on markets.
The sanctions announcement coincided with broader geopolitical tensions in the Middle East, where regional stability continues to influence energy trade flows and price volatility.
