Oil prices extended gains for a second consecutive day on Tuesday as fresh U.S. sanctions on Iran heightened concerns over tightening global supply.
By 3:40 pm AEDT (4:40 am GMT) Brent crude futures climbed $0.43, or 0.6%, to $75.21 per barrel, while U.S. West Texas Intermediate (WTI) crude rose $0.50 or 0.7%, to $71.20 per barrel.
The U.S. government imposed new sanctions on Monday targeting over 30 brokers, tanker operators, and shipping firms involved in transporting Iranian crude. President Donald Trump has reiterated his goal of reducing Iran’s oil exports to zero.
ANZ analysts commented in a note to clients: “The U.S’s stance on Iran could significantly reduce Iranian oil exports. Renewed sanctions on Russia and the halt of U.S. purchases of Venezuelan crude oil will add to the complexity. OPEC member states face rising breakeven levels for their oil pricing, putting pressure on their fiscal budgets.”
However, gains in oil prices were tempered by concerns over demand. Trump confirmed on Monday that tariffs on Canadian and Mexican imports, set to take effect on March 4, remain on schedule.
In Europe, Ukraine hosted European leaders to mark three years since Russia’s invasion, but U.S. officials were notably absent, reflecting Trump's efforts to strengthen ties with Moscow. The market views this shift in U.S.-Russia relations as a potential sign of easing sanctions on Russian oil, which could increase global supply.
