Oil Prices Rise to $72 after US Imposes New Sanctions on Iran

Oil prices rose on Thursday after the United States imposed new sanctions related to Iran, heightening tensions in the Middle East, although a stronger dollar limited gains.

Brent crude futures closed up 1.72% at $72 a barrel.

The April contract for US West Texas Intermediate (WTI) closed up 1.64% at $68.26 a barrel, while the more actively traded May contract settled up 1.73% at $68.07.

Latest Oil Prices

WTI Crude $68.26  +1.64%

Brent Crude $72.26  +0.36%

Murban Crude $74.28  +0.54%

Louisiana Light $70.00  -0.61%

Bonny Light $78.62  -2.84%

Opec Basket $73.13  +0.21%

Mars US $73.22  -1.56%

Gasoline $2.196 +0.23%

Natural Gas $3.871 -2.62%

These gains came after the United States imposed new sanctions targeting entities including, for the first time, an independent Chinese refinery known as Teepot and vessels that supplied Iranian oil to these refineries. China is the largest importer of Iranian oil, while independent refineries play a major role in purchasing Iranian crude. Iran produces more than 3 million barrels of crude oil per day.

Phil Flynn, senior analyst at Price Futures Group said, "The market needed a catalyst to move, and this decision was the factor that pushed prices back up."

In a related development, OPEC+ issued a new timetable outlining commitments by seven countries, including Russia, Kazakhstan, and Iraq, to ​​cut their oil production to compensate for excess production above agreed-upon levels. According to OPEC data, the monthly cuts will reach between 189,000 and 435,000 barrels per day and will continue until June 2026.

Meanwhile, US crude oil inventories rose by 1.7 million barrels, exceeding previous expectations of a 512,000-barrel increase, according to a Reuters poll. Dollar pressure and tariff concerns.

Oil gains were capped by a 0.5% rise in the US dollar, making oil more expensive for buyers holding other currencies. The US Federal Reserve left interest rates unchanged on Wednesday but indicated it was in no rush to cut rates this year due to uncertainty over US tariffs.

While lower interest rates typically support economic activity and increased energy demand, some analysts expect the oil price rally to be volatile in the coming period.