Oil Prices Surge as U.S. Tightens Iran Sanctions: Hürmüz Risks and OPEC's Balance at Stake

Oil prices rose slightly on Friday amid concerns over the U.S.'s potential to extend economic sanctions against Iran. Brent crude stood at $87.08, while WTI settled at $81.31. U.S. Treasury Secretary Scott Bessent warned that Washington could intensify its economic pressure on Iran, potentially leading to unprecedented measures. The announcement coincides with Iran's restrictions on Hürmüz Strait traffic, which previously supplied about 20% of global oil. Meanwhile, OPEC and the IEA downplayed demand growth expectations, while U.S. crude oil inventories saw their largest weekly increase in over three and a half years. Risks persist in the Hürmüz Strait, where two oil tankers owned by Abu Dhabi National Oil Company were reportedly attacked as they transited the waterway. The U.A.E. government classified the incident as an Iranian attack. Markets reacted by pushing oil prices higher.

The U.S.'s decision to extend sanctions could further tighten global oil supplies, disrupting OPEC's production balance and potentially boosting demand for commercial credit as banks adjust to the energy market volatility.