Oil Prices Set for Second Weekly Gain as Iran Sanctions Risk Grows

Crude oil prices are on track to achieve their second consecutive weekly increase, fueled by escalating geopolitical tensions in the Middle East and ongoing attacks on Russian energy infrastructure. President Trump announced on social media that the U.S. is preparing "Economic Warfare and Isolation on an unprecedented scale" against Iran. Treasury Secretary Scott Bessent further elaborated, stating, "It is a one-two punch. We have the blockade (on Iran), and we are going to have the toughest sanctions in history." He added, "It is going to work in Iran and we are going to collapse this regime. It is time for our allies and the rest of the world to make a decision." Details of this economic pressure campaign are scheduled for release on Monday, with reports indicating the U.S. will seek support from China. However, China's potential involvement is uncertain, given its position as the largest buyer of sanctioned Iranian crude and its general stance against using sanctions as a geopolitical tool. Analysts suggest that despite both sides being entrenched, crude prices are steadily rising. Both BMI and Fitch Ratings have indicated they will revise their oil price forecasts upward due to the latest developments in the Persian Gulf.