Oil Prices Climb on New Sanctions Targeting Iranian Oil

Oil prices edged up slightly, with Brent crude trading at $68 per barrel and WTI at $65. 

The rally was fueled by new U.S. sanctions targeting an Iranian oil and LPG shipping magnate, tightening pressure on Iran’s exports.

Despite progress in U.S.-Iran nuclear talks, failure to secure a deal could drive Iran’s oil flows to zero, said John Kilduff of Again Capital, boosting prices.

A surging U.S. equity market, reflecting higher investor risk appetite, also supported the recovery, per Mizuho’s Robert Yawger. However, concerns linger over U.S. tariffs at 100-year highs and escalating U.S.-China trade tensions, which could curb global economic growth and oil demand, as warned by the IMF’s slashed 2025 outlook.

Russia’s economy ministry cut its 2025 Brent forecast by 17%. U.S. crude and gasoline inventories likely fell last week, while distillates rose, per a Reuters poll. Despite the rebound, analysts caution that trade disputes may continue to weigh on oil prices.