Trump Threatens New Iran Sanctions, Oil Steadies
In early Asian trade on Thursday, oil prices steadied after U.S. President Donald Trump signaled that Washington would impose additional, stricter economic restrictions on Iran. Brent crude futures rose 0.25% to $91.85 a barrel by 20:25 ET (00:25 GMT), while West Texas Intermediate (WTI) futures increased 0.15% to $84.52 a barrel.
Trump did not disclose the specific measures but described the forthcoming actions as “the most crushing economic operation ever taken against any country” and called on U.S. allies to join the effort. He warned that any nation doing business with Iran would face repercussions.
Iran is already subject to extensive U.S. sanctions targeting its oil exports, and the United States has imposed a naval blockade on the country amid the ongoing conflict. Throughout most of the year, Iran has effectively blocked the Strait of Hormuz, a chokepoint that handles roughly 20% of the world’s crude oil supply, thereby disrupting global oil flows.
Recent commercial shipping data indicate that traffic through the Strait of Hormuz remains only a fraction of pre‑war levels, despite U.S. officials repeatedly asserting that the waterway is open. Trump reiterated on Wednesday that the United States maintains full control of Hormuz and that diplomatic talks with Iran could resume “at some point.”
Iran has denied any ongoing dialogue with the United States and has insisted that Washington fulfill the conditions of a June memorandum of understanding (MoU) before any progress on Hormuz can be achieved. The MoU lapsed earlier this week with no indication that it will be renewed.