Oil prices rose on Friday, with both Brent and U.S. West Texas Intermediate (WTI) crude futures on track to register their second consecutive weekly gains. This upward momentum is attributed to fresh U.S. sanctions targeting Iran and a new plan from the Organization of Petroleum Exporting Countries and its allies (OPEC+) to cut production, raising expectations of a tighter global oil supply.
Brent crude futures increased by 21 cents, or 0.3%, to $72.21 per barrel as of 0435 GMT. Similarly, U.S. WTI crude futures gained 25 cents, or 0.4%, reaching $68.32 per barrel. On a weekly basis, both Brent and WTI were poised to rise about 2%, marking their largest weekly gains since the first week of 2025.
The boost in oil prices followed the United States Treasury’s announcement on Thursday of new Iran-related sanctions. For the first time, the sanctions targeted an independent Chinese refiner and several entities and vessels involved in supplying Iranian crude oil to China. This marked a clear escalation in U.S. sanctions policy, analysts at RBC Capital Markets noted in a report on Friday.
The sanctions have added pressure on Iran’s already struggling oil exports, which could reduce supply in an already tight market. This, coupled with OPEC+’s continued plans to cut output, has fueled the ongoing rise in oil prices.
Oil market participants are closely watching these developments, as they signal potential for continued tightening in supply, which could further support prices in the coming weeks.
