Oil prices reach two-week high amid intensified US sanctions and geopolitical tensions

Crude oil prices surged to a two-week high on Tuesday, 11 February 2025, as US sanctions on Iranian and Russian oil exacerbated supply concerns. The market’s bullish momentum was further fuelled by escalating tensions in the Middle East, overshadowing the broader economic implications of trade tariffs.

Brent futures rose by $1.13 and closed at $77.00/barrel.

WTI increased by $1.00 and settled at $73.32/barrel.

Both benchmarks have now recorded gains for three consecutive sessions.

The latest round of US sanctions, which target oil tankers, producers, and insurers, has disrupted the shipment of Russian and Iranian crude, leading to heightened uncertainty in global supply chains. Several million barrels of Russian oil from Pacific platforms remain stranded as shuttle tankers, previously responsible for transporting these shipments to China, were blacklisted. The move has raised significant concerns for key importers such as China and India, which now face restricted access to discounted crude.

Beyond sanctions, geopolitical risks are adding further upward pressure on oil prices. The potential collapse of the ceasefire agreement in Gaza has reignited fears of renewed conflict, increasing the likelihood of further regional instability.

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Written by: Muhammad Hafiz