Oil Holds Six-Week High as US Targets Russian and Iranian Trade
Oil steadied after closing at the highest in almost six weeks as President Donald Trump threatened to penalize India for buying Russian crude and his administration tightened a crackdown on supplies from Iran.
West Texas Intermediate traded above $70 a barrel after surging more than 7% so far this week. Brent settled near $73 on Wednesday. The US president said he would impose a tariff on India’s exports and a penalty for its energy purchases from Russia. He later added the two sides were still in talks.
Meanwhile, the US implemented its most sweeping Iran-related sanctions in seven years. The measures toward Tehran and India have raised concerns about tightening supply and a potential knock-on effect to products such as diesel, with oil on track for its biggest monthly gain since September 2023.
The market is keeping a close watch on the US deadline to nail down more trade deals by Aug. 1, with Trump also announcing a 15% tariff on South Korean goods. OPEC+ is scheduled to convene a meeting over the weekend to decide on supply policy for September, with most expecting another bumper increase.
Prices:
WTI for September delivery was 0.4% higher at $70.31 a barrel at 7:40 a.m. in Singapore.
Futures closed at $70 a barrel on Wednesday, the highest level since June 20.
Brent for September settlement, which expires on Thursday, rose 1% to close at $73.24 a barrel on Wednesday.
Source: Bloomberg
