WTI crude oil prices surged by 3.5% as the United States imposed new sanctions aimed at curbing Iran's oil exports, heightening concerns over global supply. The May delivery WTI crude rose by $2.21, or 3.54%, closing at $64.68 per barrel, marking the highest level since early April.
Analysts, including Giovanni Staunovo from UBS, suggest that the new sanctions on Iran and hawkish comments from the U.S. Treasury have intensified worries about oil supply, thus supporting the price increase. The U.S. President recently announced policies targeting overseas "teapot" refineries as part of negotiations over Iran's nuclear program, increasing pressure on Tehran.
Additionally, OPEC mentioned receiving new plans from Iraq, Kazakhstan, and others to further cut production to compensate for exceeding output quotas, further fueling supply concerns. IG market analyst Tony Sycamore noted several factors behind the oil price rebound, including short covering, a weaker dollar reducing crude purchase costs, and U.S. pressure on Iran.
