Oil prices held near recent highs on Thursday as investors assessed a new US push to isolate Iran economically, adding another layer of uncertainty to energy flows from the region.Brent crude traded below $92 a barrel after rising more than 5% over the previous four sessions. West Texas Intermediate for October delivery was near $84.
The latest move followed President Donald Trump’s announcement of measures aimed at cutting Iran off from financial and commercial activity.
Trump described the measures as “Economic Warfare and Isolation on an unprecedented scale” and warned that countries allowing banks, businesses, airports or government bodies to support Iran could face severe economic consequences. He also called for action against smuggling, cash transfers, exchange houses and ship registries linked to Iran.
The announcement comes as the US and Iran remain locked in a confrontation over the Strait of Hormuz, a critical route for global energy shipments. Washington has maintained a naval blockade of Iranian ports, while some crude continues to move through the waterway despite restrictions and risks to shipping.
The latest US measures could put additional pressure on buyers of Iranian crude, with China remaining a key market. The economic campaign follows a shift in Washington’s approach from military pressure towards sanctions and financial isolation.
The UAE also moved to deepen Iran’s isolation a day before Trump’s announcement, cutting economic ties with Tehran after accusing Iran of launching ballistic missiles at its territory. The UAE is a major financial and commercial hub for Iranian businesses.
US inventory data provided another factor for oil traders. Refinery utilisation rose to its highest level since 2019, while distillate inventories fell to their lowest level in more than a month, according to the Energy Information Administration. That was partly offset by a 4.4 million-barrel rise in US crude inventories last week.
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