• Oil prices are on the rise due to new US sanctions targeting Iranian oil exports, particularly affecting a Chinese refinery involved in significant purchases of Iranian crude. Brent crude futures increased by 0.5% to $66.19 a barrel, while West Texas Intermediate rose by 0.7% to $62.91. This marks a potential weekly gain for oil prices, driven by concerns over supply constraints amid OPEC's commitment to further output cuts from member countries like Iraq and Kazakhstan.
• The sanctions come as part of a broader strategy by the Trump administration to exert pressure on Iran amid ongoing nuclear negotiations. Analysts suggest that while Iranian production may not significantly impact global supply, the combination of sanctions and OPEC's output adjustments has created a bullish sentiment in the market. Additionally, recent draws in US gasoline and distillate stocks have further supported the upward trend in oil prices.