Oil prices edged higher on Thursday as US warnings of potential secondary sanctions on buyers of Iranian oil heightened supply concerns, Daily Trust can report.
International benchmark Brent crude futures traded at $98.78 per barrel as against $94.93. US benchmark West Texas Intermediate (WTI) rose about 2.73% to $94.02 per barrel.
Prices found support from signals that the US could impose “secondary sanctions” on countries purchasing Iranian oil. The Treasury Department announced on Wednesday that the US imposed new sanctions targeting Iranian oil smuggling and financing networks.
The Department sanctioned more than two dozen individuals, companies and vessels connected to the network, as well as an alleged financier involved in exchanging Iranian oil for Venezuelan gold to benefit Hezbollah and Iran’s Islamic Revolutionary Guard Corps (IRGC).
The State Department said in a separate statement that the action aims to “decisively limit Iran’s ability to generate revenue” as shipping through the Strait of Hormuz remains highly disrupted.
“Financial institutions should be on notice that the Treasury will leverage all tools and authorities, including secondary sanctions, against those that continue to support Tehran’s terrorist activities,” Treasury Secretary Scott Bessent said in a statement.
Meanwhile, the US and Iran signaled a potential for flexibility in their diplomatic standoff despite failing to reach a final agreement during weekend talks in Pakistan, The Wall Street Journal reported Wednesday.
DAILY TRUST.
