Oil Prices Steady After Trump Announces New Iran Sanctions
In early Asian trade on Thursday, Brent crude futures increased 0.25% to $91.85 a barrel and West Texas Intermediate rose 0.15% to $84.52 a barrel, keeping overall oil prices steady. The movement follows U.S. President Donald Trump's statement that Washington will impose additional, stricter economic restrictions on Iran and is calling on allied nations to join the effort. Trump did not detail the specific measures but described the plan as “the most crushing economic operation ever taken against any country.”
Iran remains subject to existing U.S. sanctions on its oil exports, and the United States has also imposed a naval blockade amid the ongoing conflict. In response, Iran has effectively blocked the Strait of Hormuz for most of the year, disrupting approximately 20% of global crude supplies. Recent shipping data indicate that commercial traffic through the strait remains at a fraction of pre‑war levels, despite U.S. officials asserting the waterway is open.
Trump reiterated on Wednesday that the United States holds full control of the Strait of Hormuz and that diplomatic talks with Iran could resume “at some point.” Iran has denied any ongoing dialogue and has demanded that Washington fulfill the conditions of a June memorandum of understanding before any progress on Hormuz can be made. The memorandum lapsed earlier this week, and no indication of renewal has been provided.
Overall, the announcement of tougher sanctions has not pushed oil prices higher, leaving them steadied amid heightened geopolitical tension.