Market Overview
Oil prices edged higher on Monday as traders weighed the impact of escalating U.S. pressure on Iranian oil exports. Brent crude rose 1.34% to $65.13 per barrel, while West Texas Intermediate gained 1.25% to trade at $60.89.
The gains come amid renewed signals from the Trump administration that it intends to enforce a strict maximum pressure campaign against Iran, including potential secondary sanctions on buyers of Iranian crude.
Sanctions Enforcement Tightens
The U.S. Treasury Department has been expanding its sanctions targeting Iranian oil shipments, focusing particularly on tankers and trading networks that have facilitated exports to Asia. Industry analysts estimate that Iran has been exporting approximately 1.5 million barrels per day despite existing restrictions.
Any significant reduction in Iranian supply would remove a meaningful volume from global markets at a time when OPEC+ is carefully managing its own production quotas.
Venezuela Adds to Supply Concerns
Meanwhile, Venezuelan production continues to face challenges amid ongoing political and economic instability. The combination of potential Iranian supply disruptions and persistent Venezuelan output struggles has kept a floor under prices despite broader economic uncertainties.
Market Outlook
Traders remain focused on the balance between supply constraints and demand concerns. While geopolitical tensions support prices, worries about global economic growth and potential tariff impacts continue to cap gains.
Natural gas prices held steady at $3.04 per MMBtu, showing little movement as mild winter weather in key consuming regions limits heating demand.