The drop came as tensions between the United States and Iran increased, raising fears that oil supplies from the Middle East could face more disruptions. Oil prices slipped slightly on Friday but remained on track for a second straight weekly gain.
Brent crude was trading at $93.28 a barrel, down 50 cents, or 0.53%, by 0949 GMT on Friday, according to Reuters. US West Texas Intermediate (WTI) crude was at $86.39 a barrel, down 44 cents, or 0.51%. She said the blockade and threats of tougher sanctions on Iranian oil exports are helping push oil prices back above $90 a barrel, according to Reuters.
Washington has threatened to impose what it called the toughest financial sanctions in history against Iran, Reuters reported. The main reason behind the latest oil price rise is growing tension between the US and Iran. The US has also brought its blockade of Iranian oil shipments back into focus. The pressure could further reduce Iran’s ability to export crude oil. However, the bigger risk is that the situation could become worse if attacks on shipping increase. Nyaga warned that retaliation against the new economic sanctions could create further problems for oil supplies.
“The US is taking a very firm stance against Iran,” said ANZ analyst Soni Kumari.
