According to Daily Trust, oil prices slightly increased on Thursday as supply fears increased due to US warnings of possible secondary sanctions on Iranian oil customers.
International benchmark Brent crude futures were trading at $98.78 a barrel instead of $94.93. West Texas Intermediate (WTI), the US benchmark, increased by roughly 2.73% to $94.02 per barrel.
Signals that the US would impose “secondary sanctions” on nations buying Iranian oil helped to boost prices. The US imposed fresh sanctions on Iranian oil smuggling and finance networks, according to a Treasury Department announcement on Wednesday.
Along with an alleged financier involved in trading Iranian oil for Venezuelan gold to support Hezbollah and Iran’s Islamic Revolutionary Guard Corps (IRGC), the Department sanctioned over two dozen people, businesses, and ships associated with the network.
As shipping through the Strait of Hormuz continues to be severely hampered, the State Department stated in a separate statement that the measure is intended to “decisively limit Iran’s ability to generate revenue.”
In a statement, Treasury Secretary Scott Bessent stated, “Financial institutions should be on notice that the Treasury will leverage all tools and authorities, including secondary sanctions, against those who continue to support Tehran’s terrorist activities.”
The Wall Street Journal reported on Wednesday that after failing to come to a definitive agreement during weekend negotiations in Pakistan, the US and Iran indicated a possibility for flexibility in their diplomatic deadlock.
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