US-Iran war: Oil prices extended gains for a fifth straight session after US President Donald Trump unveiled a fresh set of measures aimed at crippling Iran’s economy.
Brent, the global oil benchmark, climbed above $92 a barrel after rising more than 5% over the previous four sessions. Meanwhile, West Texas Intermediate (WTI) crude for October delivery traded near $85 a barrel.
What’s driving crude oil prices?
Trump said the measures would amount to “Economic Warfare and Isolation on an unprecedented scale,” describing them as an “ECONOMIC D-DAY” and calling on all US allies to support Washington.
He warned that countries allowing financial institutions, companies, airports or government bodies to assist Iran would face severe economic repercussions, although he did not specify what those penalties would entail. Trump also called for an end to activities including smuggling, cash transfers, operations by exchange houses and the use of ship registries to support Iran.
Crude oil prices have surged sharply this year following the escalation of the conflict between Washington and Tehran, with tensions centred on the Strait of Hormuz. The US administration’s latest effort to intensify pressure on Iran, foreshadowed last week by Treasury Secretary Scott Bessent, could further strain relations with countries that purchase Iranian crude, particularly China, Iran’s largest market.
In recent weeks, the Trump administration has increasingly moved away from military action towards economic measures against Iran. At the same time, US forces are maintaining a naval blockade of Iranian ports, while indications suggest that some crude is still being covertly transported through the Strait of Hormuz despite heightened risks to shipping.
Trump’s announcement came a day after the United Arab Emirates severed economic ties with Tehran, accusing Iran of launching ballistic missiles at its territory. The UAE serves as a major financial and commercial hub for Iranian businesses and individuals, and the move is expected to deepen Iran’s economic isolation.
(With inputs from agencies)
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
