Oil prices surged to their highest levels in two weeks on Thursday, driven by renewed concerns over global supply following new U.S. sanctions targeting Iranian crude exports.
The gains come amid thin trading activity ahead of the Easter holiday weekend.
Brent crude futures rose by 68 cents, or 1%, to $66.53 a barrel by 12:57 GMT. U.S. West Texas Intermediate (WTI) crude gained 72 cents, or 1.2%, reaching $63.19 per barrel. Both benchmarks had settled around 2% higher on Wednesday, marking their strongest close since April 3, and are poised to end a three-week losing streak with a weekly gain.
The fresh sanctions, announced by the U.S. administration on Wednesday, include penalties on a China-based “teapot” refinery—an informal term for small, independent oil processors. The move is part of Washington’s broader strategy to reduce Iran’s oil revenues amid renewed tensions over Tehran’s nuclear activities.
Concerns over tightening supply were further amplified after the Organization of the Petroleum Exporting Countries (OPEC) confirmed it had received revised output cut plans from Iraq, Kazakhstan, and other member nations that had previously exceeded their production quotas.
Additionally, the U.S. Energy Information Administration reported a decline in gasoline and distillate inventories last week, offering further support to crude prices.
Despite the recent gains, global sentiment remains cautious. Major institutions including OPEC, the International Energy Agency, and leading banks like Goldman Sachs and JPMorgan have recently downgraded their forecasts for oil demand growth and prices. Their outlooks reflect broader market uncertainty, as U.S. tariffs and retaliatory measures from trading partners continue to disrupt global commerce.
