Oil Prices Hold Near One-Month High Ahead of OPEC+ Meeting Amid US-Iran Sanctions

Oil prices remained largely steady in early Asian trading on Wednesday, holding near a one-month high following new U.S. sanctions targeting Iran’s oil sector, which raised concerns about tightening global supplies. Attention is now focused on the upcoming OPEC+ meeting, where the cartel is widely expected to maintain current production quotas after a series of increases earlier this year.

Brent crude futures were stable at $69.12 per barrel, while West Texas Intermediate (WTI) futures held at $65.09 per barrel. Both benchmarks surged to a one-month peak on Tuesday and remained close to those levels on Wednesday.

The U.S. Treasury recently imposed sanctions on a network of companies and vessels involved in transporting Iranian oil disguised as Iraqi crude, part of ongoing restrictions following stalled nuclear talks with Tehran. These measures are expected to tighten supply further in the coming months. Meanwhile, potential U.S.-India trade discussions are in focus, after Washington levied 50% tariffs on Indian purchases of Russian oil, and Saudi Arabia and Iraq reportedly halted shipments to an Indian refinery, raising further supply concerns.

Investors are also awaiting the OPEC+ meeting scheduled for 7 September for guidance on output levels. While production is expected to remain unchanged, the cartel may reconsider further supply increases, given generally weak prices this year. U.S. inventory reports from the American Petroleum Institute and the Energy Information Administration, due later this week, will provide additional insight into demand trends following the summer travel season.

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