Crude oil prices marched higher in Thursday’s trade, climbing to their highest levels in nearly a month as the United States prepared to impose a sweeping package of economic measures aimed at further isolating Iran from international financial and commercial channels.
International benchmark Brent crude rose by nearly $3 to around $92 a barrel, hitting its highest since July 22, and extending its gains for a fifth consecutive session. U.S. benchmark West Texas Intermediate (WTI) crude jumped 3.3% to $86.72 a barrel.
US Treasury Secretary Scott Bessent said on Thursday that Iran would face the “greatest coordinated economic isolation in the history of the world.”
In an interview with CNBC, Bessent threatened secondary sanctions against countries and companies that continue to conduct business with Iran, saying it was time for US allies to decide where they stand.
China and India are major buyers of Iranian oil, although Bessent did not name either country directly. He suggested that an expanded sanctions campaign could reduce the immediate need for another major US military offensive against Iran.
The Treasury secretary’s comments came hours after President Donald Trump said on Truth Social that the US planned to choke Iran’s economy by imposing major economic penalties on any country that provides “any type of lifeline” to Tehran.
Trump warned that any country doing business with Iran or providing financial assistance to Tehran in any form would face “tremendous” consequences.
The possibility of sweeping economic sanctions comes as Iran has refused to back down from its demands that the US end its blockade of Iranian ports and fulfil other conditions before Tehran considers reopening the Strait of Hormuz.
Meanwhile, the UAE has reportedly announced a suspension of financial and economic transactions with Iran after accusing Tehran of launching ballistic missiles at its territory.
Trump had earlier this week said that the US was not engaged in talks with Iran and had no plans to begin fresh negotiations. He also said he was not interested in extending the 60-day interim peace deal, which expired on Monday.
Iran denounces Trump’s economic threat
Iran dismissed US President Donald Trump’s threats of economic pain and isolation. Foreign Minister Abbas Araghchi rejected the economic measures threatened against his country, saying such “failed policies” would fuel greater hostility among Iranians and “bring more failures,” according to the Associated Press.
In a social media post, Araghchi said the threats were aimed at diverting the attention of the US public from domestic economic problems. He added that US “economic terrorism threatens the global economy and the national sovereignty of countries around the world.”
Iran effectively closed the Strait of Hormuz—through which roughly one-fifth of the world’s traded oil had passed before the war—after Israel and the US attacked the country on 28 February.
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