Brent crude settled at $93.93 a barrel on Friday, capping a second straight weekly gain as the U.S. and Iran remain deadlocked over the Strait of Hormuz. President Donald Trump threatened tougher sanctions on Iran, while Tehran signaled it will keep the chokepoint effectively closed.
Brent crude futures rose 0.2% to settle at $93.93 a barrel, and the contract has now climbed more than 12% over two weeks. U.S. West Texas Intermediate crude slipped 0.2% to $86.64 a barrel but has still jumped more than 10% over the same span.
Trump threatens tougher sanctions
Trump on Thursday threatened to impose strict new economic sanctions against Iran to pressure the country into accepting a peace deal, and he warned of dire economic consequences for countries doing business with Tehran. U.S. Treasury Secretary Scott Bessent told CNBC Thursday: "the toughest sanctions in history."
However, Iran has largely dismissed the U.S. threats, as has China, a major buyer of Iranian crude. It was not immediately clear what the new sanctions will cover, given that Washington has already restricted Iran's oil exports and maintains a naval blockade imposed earlier this year.
Hormuz traffic still a fraction of normal
Analysts at Deutsche Bank said worries of an energy shock keep permeating markets, and Trump's rhetoric pointed to little easing of Middle East tensions. Shipping data showed commercial traffic through the Strait of Hormuz remained at a fraction of pre-conflict levels, despite U.S. claims to the contrary.
Iran signaled it will keep the chokepoint effectively closed until the U.S. adheres to the terms of a now-expired interim peace deal signed in June. State media on Friday said Tehran's response to any new U.S. threats would be devastating, citing comments from Major General Ali Abdollahi, chief of staff of the Iranian Armed Forces.
Washington moves to cushion pump prices
The Trump administration this week also moved to lower gasoline pump prices at home. The U.S. Environmental Protection Agency, in consultation with the Department of Energy, announced Thursday the issuance of a temporary emergency fuel waiver.
Source: Commodities & Futures News
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