Global oil prices advanced on Thursday as the U.S. escalated sanctions against Iran, raising concerns over potential supply disruptions from the OPEC member.
Brent crude futures rose 0.7% to trade at $83.25 a barrel by 11:15 GMT, extending gains from the previous session. The increase followed reports that Washington had broadened restrictions on Tehran’s oil trade, including penalties targeting foreign entities facilitating transactions. The measures aim to curb Iran’s crude exports, which have remained resilient despite prior U.S. sanctions.
Analysts noted that the latest U.S. actions could tighten global supply if enforcement curbs Iranian shipments. Iran, a founding member of OPEC, has continued exporting oil to key Asian buyers such as China and India, though at discounted rates. The country’s exports averaged around 1.5 million barrels per day in recent months, according to industry estimates.
Market participants also cited broader geopolitical risks in the Middle East, including ongoing conflicts in Gaza and Yemen, as contributing factors to the upward price pressure. While OPEC+ has maintained its production cuts, analysts warned that any further supply shocks could exacerbate tightness in the market.
U.S. benchmark West Texas Intermediate (WTI) crude was up 0.6% at $79.10 a barrel. The dollar’s recent strength has limited gains for oil, which is priced in the greenback, though geopolitical premiums have partially offset the drag.
Investors will monitor developments in the coming weeks, particularly any signs of reduced Iranian exports or retaliatory actions by Tehran that could disrupt regional shipping lanes.
