WASHINGTON: Oil prices jumped sharply in global markets on Friday after the United States unveiled sweeping new sanctions against Iran, targeting Tehran’s energy exports and threatening punitive measures against any nation continuing to do business with the Islamic Republic.
Brent crude oil, the international benchmark, surged by $2.20, or 2.4 percent, climbing to $93.82 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude rose by $2.33, reaching $88.16 per barrel. The rally pushed both major benchmarks to their highest levels since July 24 and marked a fifth consecutive session of gains, reflecting growing market anxiety over potential supply disruptions.
The price spike followed a tough announcement by US Treasury Secretary Scott Besant, who declared the implementation of the severest economic restrictions ever imposed on Iran. According to American broadcaster CNBC, Besant stated that the measures are designed to cripple the Iranian government’s financial infrastructure and severely limit its capacity to fund and operate through regional proxy groups.
“The US is going to impose the strictest sanctions in history against Iran,” Besant was quoted as saying. He further warned that Washington would not hesitate to enforce the measures against third-party countries and entities that continue to engage in commercial activities with Tehran, signaling a major escalation in the US “maximum pressure” campaign.
The aggressive US posture has reignited concerns over global crude supply constraints, as Iran remains a significant oil producer within OPEC. Traders are now bracing for potential retaliatory actions from Tehran, which could further destabilize the already volatile Middle East region.
The oil market’s reaction underscores deep-seated fears that the sanctions could remove a substantial volume of Iranian crude from global circulation, exacerbating existing tightness in supply just as major economies grapple with inflationary pressures.
