Prices for oil products rise after Trump threatens new sanctions against Iran

• On Monday, oil prices rose after Donald Trump threatened new sanctions against Iran.
• AP reports that WTI climbed to $80.79, while Brent rose to $83.87.
• Forbes writes that OPEC+’s decision to extend “voluntary” production cuts for another year, which is expected to last until the end of 2024, is the reason for the rise in oil prices.

Oil prices rose on Monday after President Donald Trump said that the United States would impose new sanctions on Iran. AP material notes that Trump tied the threat of new sanctions to the recent escalation of hostilities in the Middle East, which could lead to a further increase in the price of oil.

According to AP, on Monday, the price of West Texas Intermediate (WTI) oil rose by 5% to $80.79 per barrel. Brent, which is trading at a discount, rose by 5% to $83.87 per barrel.

AP material also states that, with the conflict continuing, the market expects that tanker deliveries will be disrupted, and that this could lead to higher oil prices. It adds that the rise in prices is also linked to uncertainty about the duration of the conflict.

Forbes further explains that OPEC+ has extended “voluntary” production cuts for another year. The publication notes that, under the terms of the agreement, the group will keep production at a level that is lower by 2 million barrels per day than it would have been without the cuts, and that this is expected to last until the end of 2024.

Forbes also notes that OPEC+ maintains the decision to extend the cuts, which it says is aimed at stabilizing the oil market. The publication adds that, according to its calculations, the group’s production cuts will help keep oil prices from falling sharply.

Tags: Middle East/Economy/Energy