Oil prices have surged to a near three-week high. This increase came after new U.S. sanctions on Iran and plans by OPEC+ to cut production. Both factors signal tighter oil supplies in the coming months.
Brent crude futures rose by 0.6%, reaching $72.46 per barrel. West Texas Intermediate (WTI) crude futures increased by 0.7%, hitting $68.16 per barrel. These price gains marked a second consecutive week of growth, with increases ranging from 1.7% to 3%.
On Thursday, the U.S. imposed new sanctions on Iran. The sanctions targeted Iranian oil shipments and an independent refinery in China. Washington’s goal is to curb Iran’s oil exports and pressure Tehran to abandon its nuclear ambitions.
Several oil tankers, believed to be part of Iran’s "shadow fleet," were also sanctioned. The restrictions add to existing tensions in the global oil market. However, China remains Iran’s largest oil buyer and does not recognize U.S. sanctions.
The Organization of Petroleum Exporting Countries (OPEC) and its allies agreed to reduce output. Seven member nations, including Saudi Arabia and Iraq, will implement cuts. These reductions will range from 189,000 to 435,000 barrels per day and will last until June 2026.
The decision reverses recent production increases. Kazakhstan had been exceeding OPEC+ production limits in recent months. With new cuts in place, supply levels are expected to tighten further.
Oil traders reacted strongly to the news. The combination of U.S. sanctions and OPEC+ cuts suggests a supply crunch in the near future. Additionally, concerns over Middle East instability continue to support higher oil prices.
Brent and WTI crude are set for further gains if supply constraints persist. Investors are closely watching developments in Iran, China, and OPEC+ for potential market shifts.
Stay ahead of the latest oil price trends and market insights. Visit our website for more updates: FIXIO Markets.
Oil prices hit a three-week high as U.S. sanctions on Iran and OPEC+ production cuts signal tighter supplies. Learn more about market trends.
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