Oil prices boosted by US sanctions on Iran

Global oil prices rose in European trade on Thursday on track for the second straight profit, with US crude scaling a week high, while Brent hit two-week highs.

It comes amid prospects of reduced supplies in the markets after Washington imposed additional sanctions  to impede Iranian oil shipments, while some OPEC producers vowed productions cuts.

Prices

US crude oil price rose 1.75% today to $63.01 a barrel, with a session-low at $61.94.

Brent rose 1.45% today to $66.89 a barrel, an April 7 high, with a session-low at $65.95.

On Wednesday, US crude rose 0.7%, while Brent rallied 1.75% following strong Chinese data/

Iran Sanctions

US President Trump’s administration issued new sanctions targeting Iranian oil exports, including sanctions on Chinese refineries, raising the pressure on Tehran amid talks on Iran’s nuclear program.

OPEC Output Cuts

OPEC announced on Wednesday that it received updated plans from Iraq, Kazakhstan, and other countries to conduct production cuts in order to compensate for increased production beyond the quotas recently.

US Stocks

The Energy Information Administration reported a buildup of 0.5 million barrels in US crude stocks last week, slightly above estimates of a 0.4 million barrels build.

Total stocks are now up to 443 million barrels, the highest since July 2024 in a negative sign for demand in the US.