Oil Rallies to One-Month High as Trump Targets Iran Backers

By Adedapo Adesanya

Oil jumped more than 2 per cent on ‌Thursday to its highest level in nearly a month, after US President Donald Trump warned of retaliation against nations supporting Iran.

Brent crude futures gained $2.16 or ​2.4 per cent to trade at $93.78 a barrel, while the US West Texas Intermediate (WTI) crude futures for September ​rose by $2 or 2.3 per cent to $87.83 a barrel.

President Trump has threatened sweeping economic measures against Iran, warning countries that provide Iran with “any type of lifeline” that they could face severe consequences.

The American President described the planned campaign as “economic warfare and isolation on an unprecedented scale,” as the US seeks to intensify pressure on Tehran nearly six months into the conflict.

US Treasury Secretary Scott Bessent said the Trump-led administration would impose what he called the “toughest sanctions in history” on Iran and urged China and other countries to cooperate with the campaign.

Mr Bessent said he would hold a press conference on Monday to provide details of the measures, which he said would complement the US blockade of Iran.

Concerns about stricter sanctions enforcement against Iran added to anxiety about the risk to supply in the Middle East.

The economic offensive comes as the war, which began on February 28 after the US and Israel launched military strikes on Iran, has killed thousands of people and severely disrupted energy supplies.

Iran’s blockade of the Strait of Hormuz, a key route for global oil and gas shipments, and attacks on energy infrastructure across the Middle East have sharply reduced the flow of energy to international markets.

The latest US threats mark an escalation in the US’s economic pressure on Iran, with Trump also warning countries that continue to trade with or support Iran that they could face punitive measures. Iran has dismissed the campaign as “economic terrorism” and a continuation of failed US policies.

Shipping traffic through the Strait of Hormuz remains far below ​pre-war levels, according to the ​latest shipping data. Prior to ⁠the Iran war, shipments equal to about one-fifth of global consumption moved through the waterway.

This week, the United Arab Emirates suspended all financial and economic transactions with Iran until further notice, highlighting ​the fraught ties between the major Gulf Arab oil producer and Iran. The war has also ​impacted the supply ⁠of refined fuels and drawn down inventories, with less crude available to refiners.