Oil Prices Set to Post First Weekly Gain in Three Weeks

Crude oil futures logged their first weekly gain in three weeks, lifted by a fresh round of U.S. sanctions on Iran, stepped-up output discipline from OPEC producers, and improved U.S. export flows.

In a holiday-shortened trading week, West Texas Intermediate (WTI) settled at $64.01 per barrel on Thursday, up $3.15, or 5.18%, for the week. Brent crude saw a similar percentage gain, with both benchmarks bouncing off multi-week lows on supply-side catalysts.

U.S. Sanctions on Iran Reignite Supply Risk Premium

The most impactful development this week was Washington’s decision to escalate sanctions targeting Iranian crude exports. Announced on Wednesday, the measures included penalties on a Chinese “teapot” refinery and signaled a renewed push by the Trump administration to restrict Tehran’s energy revenues amid rising nuclear tensions?.

This hardening stance heightened fears of tighter global supply, especially given Iran’s recent resurgence in oil exports via informal channels. The market interpreted the sanctions as a sign that the U.S. may clamp down further on volumes flowing to China and other Asian buyers. Hawkish commentary from the U.S. Treasury added to the bullish tone, with traders positioning for potential reductions in Iranian crude availability heading into summer.