Oil prices went up for the second straight day as the United States tightened sanctions aimed at cutting off Iran’s oil exports. The move is part of Washington’s effort to apply maximum pressure on Tehran’s energy sector.
Brent crude rose past $66 per barrel after a 2% gain on Wednesday, setting the stage for what could be its first weekly rise in April. West Texas Intermediate (WTI) was steady near $63.
US steps up action on Iranian oil
The renewed jump in oil prices followed comments from US Treasury Secretary Scott Bessent, who announced additional measures to reduce Iran’s ability to sell oil. The US also sanctioned another Chinese refinery accused of processing Iranian crude.
The crackdown aims to push Iranian exports close to zero, a strategy Washington has pursued at different times over the past decade. Analysts say this move is likely to tighten global oil supply and may push prices even higher if it continues.
Oil markets react with caution
Oil traders have been watching the Middle East closely in recent weeks. Tensions involving Iran often make markets nervous because of the region’s key role in global oil production.
Still, the gains come during a month when prices have been generally flat due to weak demand growth and concerns about economic slowdowns in major economies.
Nigeria’s link to global oil trends
For oil-producing countries like Nigeria, higher global oil prices could bring in more foreign exchange. However, experts warn that long-term benefits depend on stable production and reduced theft.
With Nigeria’s oil benchmark set at $75 per barrel for 2025 and Brent currently at $66, there’s still ground to cover before meeting budget expectations.
Looking ahead
Oil may continue to rise if US pressure on Iran escalates and demand picks up. But markets are also watching for signs of a global economic rebound, which could influence prices in the coming weeks.
