Oil rises 1.5% after new Iran sanctions
Oil prices continued to follow an upward trend on Thursday after the United States imposed fresh sanctions targeting Iran’s oil sector in the latest round of economic escalation. The sanctions heightened investor worries about the situation in the Middle East where the US has stepped up airstrikes against the Yemeni Houthis and amid the breakdown of the ceasefire between Israel and Hamas in Gaza.
West Texas Intermediate sold for $68.34 per barrel. Brent for the same month’s settlements sold for $71.78 per barrel.
The Organization of Petroleum Exporting Countries (OPEC) and its partners, known as OPEC+, revealed on Thursday an updated compensation cuts plan that will run through June 2026.
Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, and Oman have all committed to oil production cuts, OPEC shared in a statement. The compensation cuts will stand at between 189,000 barrels per day and 435,000 barrels per day, depending on the month.
Previously, only Iraq, Kazakhstan and Russia have shared that they would cut supply to make up for the overproduction in 2024.