Oil prices rise under pressure from US move to cut Iranian exports

Oil prices are rising for a second consecutive day after the US pledged to reduce Iranian energy exports to zero. Brent crude climbed above $66 a barrel, while West Texas Intermediate rose to around $62.50. Treasury Secretary Scott Bessent vowed to apply maximum pressure on Iran’s oil supply chain, Bloomberg reported.

The US has already imposed sanctions on China’s second-largest refinery, Shandong Shengxing Chemical Co. Ltd., for processing more than $1 billion worth of Iranian oil. However, experts note that these restrictions may not significantly impact oil supplies from Iran to China, as both countries have established alternative transportation routes and payment methods beyond international systems.

Meanwhile, OPEC+ continues to pressure member states to comply with production limits. The latest Bloomberg data shows little progress from Iraq and Russia, while Kazakhstan is currently producing more than 40% above its assigned quota.