Oil extended gains on Iran supply concerns and trade deal hopes
The rally was underpinned by escalating US pressure on Iran’s energy exports, as Washington announced fresh sanctions targeting Chinese firms accused of importing Iranian crude.
Crude oil prices surged for a second straight session on Thursday, with international benchmarks rising more than 3% as mounting supply concerns surrounding Iran and renewed optimism over global trade negotiations buoyed market sentiment.
Brent crude settled $2.11 or 3.2% higher at $67.96 a barrel.
WTI gained $2.21 or 3.54% to close at $64.68 a barrel.
The rally was underpinned by escalating US pressure on Iran’s energy exports, as Washington announced fresh sanctions targeting Chinese firms accused of importing Iranian crude. The move added to fears of tighter global supply, further supported by OPEC’s decision to maintain voluntary output cuts through June 2026—easing concerns surrounding an upcoming increase in production slated for May this year.
On the demand side, sentiment improved as the US expressed confidence in securing a trade agreement with the European Union. Simultaneously, progress in discussions with Japan fuelled expectations that broader trade deals could be reached, potentially averting the most damaging tariff scenarios and supporting energy demand growth.
Written by: Derek Yong