Oil prices are on track for a significant weekly gain as markets grow increasingly concerned over potential supply disruptions stemming from Washington's latest efforts to isolate Iran's economy. West Texas Intermediate crude for October delivery is trading above $86 per barrel, marking a nearly 6% advance so far this week. Meanwhile, the global benchmark Brent crude settled near $94 per barrel on Thursday, following five consecutive sessions of gains.
US Treasury Secretary Scott Bessent has indicated that the administration will unveil the specifics of the plan next Monday, after President Trump characterized the initiative as an "economic D-Day." The measures are designed to target Tehran and could also impact nations that maintain business ties with the Islamic Republic.
In response, Rezaei, a member of Iran's Parliamentary National Security and Foreign Policy Commission, emphasized on the 19th that if Iran's interests are harmed anywhere in the world, the country will retaliate against hostile nations and governments by raising tariffs or seizing assets in the Strait of Hormuz.
According to CNN, citing a US official on the 19th, President Trump has instructed senior diplomatic envoys to suspend dialogue with Iran. The official revealed that Trump is frustrated with Iran's refusal to yield to his demands, and he prefers to wait until Iranian leaders signal a renewed willingness to reach the agreement he is seeking before resuming engagement.
On the 20th, Iranian Foreign Minister Araghchi took to social media to assert that the threats of "economic action" against Iran are a deliberate attempt to divert attention from US domestic fiscal challenges, including mounting debt and rising interest payments. He warned that persisting with previous policies toward Iran would only lead to further failures and intensify Iranian public resentment toward Washington.
Oil prices have surged more than 50% since the start of the year, as the US-Iran conflict has destabilized the energy-rich Middle East, with both sides engaging in a strategic standoff in the Strait of Hormuz. Bessent stated in an interview that Washington controls the waterway and that vessels can navigate outbound through the southern shipping lane. This latest round of economic pressure escalates the US naval blockade of Iranian ports aimed at severing the country's crude exports.
The measures appear to be taking effect, as Iran's central bank governor, Abdolnaser Hemmati, noted this week that crude exports have "virtually come to a halt." Beyond the Middle East tensions, Ukraine has launched dozens of strikes on Russian refineries and ports, disrupting Moscow's energy sector and causing fuel shortages in some regions. This has further tightened the global diesel market, with diesel prices climbing at a faster pace than crude oil.