Oil ascends about 2% after sanctions against Iran and the rise of shares
Oil prices rose on Tuesday, as Brent crude futures increased by 1.8% to $ 67.44 a barrel, while West Texas Intermediate crude contracts for May rose by 2% to record $ 64.32 a barrel.
This rise came as a result of the new sanctions imposed by the United States on the Iranian natural gas and oil sectors, which led to renewed concerns about the decline in Iranian oil exports.
John Kdov of Ajin Capital has indicated that these sanctions can either lead to a nuclear agreement that may save the situation, or to the United States made efforts to reduce the flow of Iranian oil to its minimum borders.
Also, American stock markets increased to support oil prices, as the market showed a greater desire than investors in risk after a previous decline amid President Donald Trump’s criticism of the Federal Reserve Chairman. Both the two records lost more than 2% on Monday due to the progress of US -Iranian discussions and the sale of stocks.
In a related context, the International Monetary Fund reduced its economic expectations as a result of the rise in US customs duties to levels that have not been recorded for a century, and tensions escalated with Beijing. The US Treasury Secretary expressed his hope to calm commercial tensions, but the talks have not yet resumed.
According to documents obtained by Reuters, Russia reduced its expectations for the average price of Brent crude for 2025 by 17%. US oil stocks are also expected to decrease last week.
