Brent Extends Gains

Brent crude oil dropped to around $93 per barrel following a sharp weekly rally, as investors took profits ahead of an expected US announcement on tougher sanctions against Iran. US Treasury Secretary Scott Bessent said Washington would impose the “toughest” sanctions in history, describing the measures as an unprecedented campaign of economic isolation designed to pressure Iran and its trading partners into compliance. The move could further tighten global oil supplies, as Iranian shipments have already been severely disrupted and offers to Chinese buyers have declined amid the US blockade. Tehran dismissed the sanctions threat as another failed attempt to pressure Iran, saying it has experience with economic blockades and can withstand the measures while maintaining trade and economic ties with other countries. Meanwhile, tensions around the Strait of Hormuz remain elevated, with traffic through the key oil route still well below normal levels.

Brent crude oil was little changed around $97 a barrel on Friday, as investors assessed signs that Iran may be seeking an end to the conflict with the US. Iranian President Masoud Pezeshkian said Tehran would prefer to conclude the war while it remains in a position of strength, describing the existing memorandum with Washington as a victory for Iran. The comments provided some relief after Treasury Secretary Scott Bessent said the US would impose its toughest-ever sanctions on Tehran and intensify economic pressure on the Iranian regime. Amidst the conflicting signals, oil prices rose more than 5% for the second week. Meanwhile, the US military said it had helped tankers transport more than 660 million barrels of crude through the Strait of Hormuz since early May, suggesting that substantial volumes continue to move through the critical energy corridor despite the conflict and heightened geopolitical risks.

Brent crude oil traded just below $94 a barrel on Friday, heading for a second consecutive weekly gain of around 6%. Prices remained supported by expectations of further US pressure on Iran, with no clear end to the conflict that has disrupted Middle Eastern energy flows. Treasury Secretary Scott Bessent said details of Washington’s new measures to isolate Iran’s economy would be announced next Monday, after President Donald Trump described the initiative as an “economic D-Day.” The measures could affect countries that continue trading with Tehran, including China, the largest buyer of Iranian crude. Beijing has rejected economic pressure and called for a diplomatic solution. Supply concerns are also being reinforced by disruptions to Russia’s energy sector, where Ukrainian attacks on refineries and ports have affected fuel production and contributed to shortages in some regions.