Oil prices are on track for a strong weekly gain as the US prepares fresh economic measures against Iran, raising concerns that further disruption to energy supplies could tighten an already strained global market.
Brent crude traded above $93 a barrel on Friday and was heading for a weekly rise of more than 5%. West Texas Intermediate for October delivery eased towards $86 a barrel, but remained on track to extend a five-session winning streak.
The latest move higher comes as Washington prepares to intensify pressure on Tehran. US Treasury Secretary Scott Bessent said the administration will provide details of the new measures on Monday, after President Donald Trump described the planned action as an “economic D-day”. The measures are expected to target Iran and could also affect countries that continue to do business with Tehran, including China.
Oil has gained more than 50% this year as the US-Iran conflict has disrupted the energy-rich Middle East. Bessent said Washington controls the waterway and that ships can leave through a southern lane, according to an interview with CNBC.
China, the largest buyer of Iranian crude, has pushed back against the US approach. Beijing said sanctions and economic pressure would not resolve the conflict and called for a diplomatic solution.
Bessent, however, said China gets a significant share of its energy from the region and urged Beijing to cooperate with Washington.
The pressure on Iranian oil exports has already intensified, with the US maintaining a naval blockade of Iranian ports. Iranian Central Bank Governor Abdolnaser Hemmati said this week that the country's oil flows “have virtually stopped”, underscoring the potential supply impact.
The impact has been particularly severe in diesel markets, where prices have risen significantly faster than crude. Any further disruption to Iranian exports or shipping through Hormuz could therefore add another layer of pressure to global fuel markets.
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