Oil prices continued their upward trajectory, recording a fifth consecutive day of gains, as a new escalation of American pressure on Iran intensified concerns over global oil supply. The international benchmark Brent crude surpassed $93 per barrel, having already gained more than 5% over the previous four trading sessions. The American West Texas Intermediate (WTI) moved close to $87.
The latest surge came after Donald Trump announced that the United States is launching a new, exceptionally aggressive economic pressure campaign against Tehran. “It will be economic war and isolation on an unprecedented scale,” the American president stated, calling the operation “ECONOMIC D-DAY” and urging US allies to support efforts to isolate Iran.
Trump threatens sanctions against countries aiding Iran
Trump warned that any country allowing financial institutions, businesses, airports, or state entities to offer Iran a “lifeline” would face “terrible economic consequences.”
The American president called for a halt to activities including oil smuggling, cash transfers, transactions through currency exchanges, monetary swaps, and the use of ship registries to facilitate Iranian trade.
According to Bloomberg, this new strategy signals a shift by the American government away from military options and toward intensified economic pressure, with the aim of forcing Tehran back to the negotiating table.
However, the move could trigger fresh tensions with countries that continue to purchase Iranian oil, most notably China.
China is the primary buyer of Iranian oil, although official customs data has not recorded imports from Iran since 2022. A large share of these volumes is absorbed by independent Chinese refineries — known as “teapots” — which are attracted by the discounted prices offered as a result of American sanctions.
The Strait of Hormuz remains at the center of tensions
Oil markets are already in turmoil over the US-Iran standoff surrounding the Strait of Hormuz, one of the world’s most critical maritime routes for the transportation of oil and natural gas.
American forces continue to blockade Iranian ports, while there are indications that oil from other Persian Gulf countries continues to flow through the Strait of Hormuz despite threats to shipping.
Trump stated on Wednesday that “a lot of oil” continues to pass through this particular maritime route.
This development carries particular significance for markets, as any new attack on energy infrastructure or disruption to exports could further constrain global supply and drive prices even higher.
“In this environment, where markets react sharply to headlines, Trump’s latest move is pushing prices higher,” said PVM Oil Associates analyst Tamas Varga, noting that the threat of economic war against Iran is justifiably viewed as an escalation of the conflict.
A new front with the United Arab Emirates
The new American initiative comes one day after the United Arab Emirates decided to suspend commercial and financial transactions with Iran.
The UAE accused Tehran of launching two ballistic missiles at its territory. Iran’s Foreign Ministry rejected the allegation.
The UAE is one of Iran’s most important commercial and financial hubs. The severing of economic ties is expected to further increase pressure on Iran’s already isolated economy.
At 08:52 London time, October Brent futures were up 1.6%, trading at $93.07 per barrel.
September WTI, whose contract expires on Thursday, also rose 1.6% to $87.23, while October WTI was trading at $85.72.
Meanwhile, American inventory data painted a mixed picture for the market. Refinery utilization rose to its highest level since 2019, while refined product stockpiles fell to their lowest point in over a month.
On the other hand, US crude oil inventories increased by 4.4 million barrels in the previous week.
With the US-Iran confrontation remaining unresolved diplomatically and the Strait of Hormuz at the epicenter, oil markets are now pricing in the possibility that Washington’s new economic pressure campaign could lead to further escalation.
