Oil prices edged lower on Friday as traders took some profits following a climb to one-month highs, while markets assessed Washington’s plans to impose its most severe economic sanctions yet on Iran.
Brent crude futures slipped 0.2% to $93.57 a barrel by 04:11 ET (08:11 GMT), while US West Texas Intermediate crude futures declined 0.4% to $86.50 a barrel.
The modest pullback did little to change the broader weekly picture. Crude remained on course for a second consecutive week of substantial gains as the confrontation between the United States and Iran over the Strait of Hormuz continued. Brent was set to advance by more than 5% over the week.
Washington increases economic pressure on Tehran
US President Donald Trump has threatened a new round of stringent economic restrictions against Iran as Washington seeks to pressure Tehran into accepting a peace agreement.
Trump has also warned countries that continue conducting business with Iran that they could face severe economic consequences.
US Treasury Secretary Scott Bessent reinforced the administration’s position on Thursday, saying Iran would face the “toughest sanctions in history.”
Iran has largely dismissed the threat of additional US measures, while China, one of the largest purchasers of Iranian crude, has also opposed further sanctions.
Scope of additional sanctions remains uncertain
Questions remain over what Washington’s latest measures will contain, particularly because Iranian oil exports are already subject to extensive US restrictions.
The United States is also continuing the naval blockade against Iran that was introduced earlier in 2026.
Nevertheless, the increasingly confrontational rhetoric suggests little immediate prospect of a reduction in Middle East tensions, leaving the oil market exposed to continued disruption across the region.
Hormuz disruption keeps oil risk premium elevated
The Strait of Hormuz remains central to the outlook for crude supplies, with shipping data indicating that commercial traffic is still running at only a fraction of levels recorded before the conflict.
The strategically important waterway has emerged as one of the main pressure points in the confrontation between Washington and Tehran, given its importance to global energy shipments.
Iran has indicated that it will continue to keep the strait effectively closed until the United States complies with the conditions of an interim peace agreement signed in June that has since expired.
With commercial shipping severely constrained and no obvious diplomatic resolution emerging, the risk of prolonged supply disruption continues to support crude prices despite Friday’s modest decline.
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