Oil prices rose on Friday after U.S. President Donald Trump threatened sanctions on Iran’s trading partners. The threat has raised concerns about tighter oil supplies in the weeks ahead.

Brent crude, the global oil benchmark, rose to US$93.86 per barrel. U.S. West Texas Intermediate crude reached US$86.99 per barrel. Both prices have gained more than 5% this week.

Brent is up more than 6% for the week. WTI has gained more than 5%. Both benchmarks reached their highest levels since July 24 during Thursday’s trading.

The latest gains came after Trump threatened economic sanctions against countries that trade with Iran. The United States has also promised what it described as the toughest financial penalties in history.

Iran warned that its response to any new U.S. threats would be “devastating.”

Analysts said the sanctions may not immediately cut large amounts of oil from the market. Iranian exports are already under heavy pressure from the U.S. naval blockade.

However, further sanctions could create new risks. Retaliation could lead to more shipping incidents. It could also worsen existing problems around the Strait of Hormuz.

The important shipping route has already seen a major drop in traffic. Kpler data showed that seven commodity ships passed through the strait on Thursday. That was half the number recorded the previous day.

Before the U.S.-Israeli attacks on Iran began in late February, the Strait of Hormuz carried about one-fifth of the world’s oil and liquefied natural gas supplies.

Energy flows through the waterway remain disrupted as the conflict approaches its six-month mark.

Oil prices have also risen because of lower supplies from major producers. These include Saudi Arabia, Iraq, the United Arab Emirates and Kuwait.

Iranian crude sales to Chinese buyers have also declined. Trade sources said prices have increased as the U.S. blockade limits Iran’s shipments.

Meanwhile, Ukraine said its military struck a Russian oil refinery in Perm overnight. President Volodymyr Zelenskiy said the refinery is more than 1,600 kilometres from Ukraine’s border.

The ongoing supply disruptions and new sanctions threat continue to support higher oil prices.

Caption: Oil prices rise as new Iran sanctions threat sparks supply concerns.

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