Oil Jumps on US Commitment to Reduce Iran's Exports
London, [Date] - Brent futures surged by 1.1% in London after US Treasury Secretary Scott Bessent reaffirmed the Trump administration's dedication to curtailing Iran's oil shipments.
In an interview with Fox Business, Bessent emphasized the US's determination to limit Iranian exports to 100,000 barrels per day. He also indicated that he would impose additional sanctions on Russia's energy sector if President Trump requested.
The remarks ignited volatility in an otherwise subdued trading session. This week, oil markets have been roiled by President Trump's proposed reciprocal tariffs on major trade partners and his diplomatic efforts to resolve the conflict in Ukraine.
Both developments carry significant implications for the oil market. Last month, the US imposed sweeping sanctions on Russia's oil industry, while the broad tariffs threaten global economic growth and potentially oil demand.
Targeting Iranian output highlights the multifaceted nature of Trump's influence on oil prices. The International Energy Agency estimates that Iran produced approximately 3.3 million barrels per day of crude last month, accounting for roughly 3% of global supply.
Over the past week, major forecasting agencies have issued their monthly oil market reports. The International Energy Agency and the US Energy Information Administration have converged in their projections, anticipating a limited global oil surplus this year.