By Sama Marwan,
Oil prices rose in early Asian trading on Friday, heading for their second consecutive weekly gain, driven by new U.S. sanctions on Iran, OPEC+’s new strategy, and expectations of supply cuts.
Brent crude futures climbed 42 cents (0.6%) to $72.40 per barrel, while West Texas Intermediate (WTI) crude increased 45 cents (0.6%) to $68.52 per barrel.
Both benchmarks are set for a weekly increase of around 2%, marking their biggest weekly gain since the first week of the year.
According to CNBC, oil prices surged after the U.S. Treasury Department announced new Iran-related sanctions on Thursday, targeting an independent Chinese refinery, along with several entities and vessels involved in Iranian crude exports to China.
This move marks the fourth round of U.S. sanctions on Iran since former President Donald Trump pledged in February to reinstate what he called a “maximum pressure” campaign, aiming to cut Iran’s oil exports to zero.
Analysts from the Australia and New Zealand Banking Group (ANZ) predict that Iran’s crude oil exports could drop by 1 million barrels per day due to the tightening sanctions, down from an estimated 1.8 million barrels per day in February.
Oil prices also received a boost from OPEC+’s newly announced plan to further cut production, involving seven member nations that exceeded their agreed output levels.
The plan includes monthly reductions ranging between 189,000 and 435,000 barrels per day, extending until June 2026.
