Oil prices rise 1% thanks to Iran’s sanctions and a decrease in America

Oil rose 1% during early trading today, Wednesday, continuing to achieve gains from the previous day, with investors evaluating a new round of sanctions on Iran, decreasing crude stocks in America, and President Donald Trump retracted the tone of the threat towards the central bank.

The market received support after Trump’s retreat on Tuesday about his threats to dismiss the Federal Reserve Chairman Jerome Powell, after he was criticized for a few days for not lowering interest rates, and Trump also pointed to the possibility of reducing customs duties on China.

Brent crude futures rose 0.9% to $ 68.05 a barrel by 03:00, while Texas crude price reached $ 64.27 a barrel, an increase of 0.94%.

On Tuesday, America imposed new sanctions targeting the Iranian natural gas pole, Assad Allah, Imam Jumaa, and his commercial network, and the Treasury said in a statement that the Juma Network is responsible for charging quantities of hundreds of millions of dollars of liquefied oil and crude oil from Iran to foreign markets.

At the same time, sources in the market reported yesterday, quoting the data of the Petroleum Institute in America, that their crude oil stocks decreased 4.6 million barrels last week, and oil stock data is scheduled to be released at 14:30 GMT today, Wednesday, and analysts expected that US crude stocks decreased 800 thousand barrels on average last week.

Trump told reporters on Tuesday that he would be very nice in negotiations with China and that customs duties on the goods from them will decrease significantly after reaching an agreement, but not to zero, while US Treasury Secretary Scott Besent mentioned that trade tension between Washington and Beijing will decline, but negotiations have not started and will be strenuous.

These statements conveyed a source listened to a special offer presented by Besent in front of investors at a conference of JB Morgan, and customs duties pressed crude futures with an increasing concern of investors about the slowdown in the global economy.