Oil prices hit a two-week high on new US sanctions and OPEC supply plans

Oil prices reached a two-week high on Wednesday, supported by new US sanctions targeting Iranian crude exports, particularly those linked to China, and by indications of stricter production discipline from OPEC.

Brent crude settled $1.18 higher at $65.85 a barrel.

US West Texas Intermediate (WTI) gained $1.14 to close at $62.47 a barrel.

The US government expanded sanctions to include additional Chinese entities, including a second independent refinery, which had reportedly imported over $1 billion worth of Iranian crude since commencing operations. Several shipping firms and vessels were also targeted for restrictions as Washington sought to curtail Iran’s oil trade amid protracted nuclear negotiations.

Separately, OPEC confirmed that members such as Iraq and Kazakhstan have submitted revised production plans, outlining deeper cuts until 2026. The new targets, involving an additional 369,000 barrel-per-day reduction, aim to offset previous overproduction and reinforce the group’s commitment to market stability.

Written by: Derek Yong