Oil finishes the week with substantial growth due to US economic pressure on Iran

World oil prices are finishing the week with substantial growth amid US plans to strengthen economic isolation of Iran and fears of new supply disruptions. Brent on August 21 is trading above $93 per barrel and is heading for a weekly increase of about 6%.

American West Texas Intermediate with October delivery is near $86 per barrel after five consecutive sessions of growth.

The day before, the movement was even sharper. On Thursday, Brent rose more than 3% to $94.48 per barrel, and WTI almost 4% to $87.51. Both grades reached their highest levels since the beginning of August.

The main factor for the market was Washington's new campaign against Tehran. US President Donald Trump announced the beginning of an "economic war" against Iran, calling it an "economic D-Day."

US Treasury Secretary Scott Bessent said that a detailed plan would be presented on Monday, August 24. According to him, Washington is preparing the toughest sanctions regime against Iran and intends to seek its enforcement not only from American companies, but also from other countries.

This means that restrictions may fall on companies and financial institutions of states that continue to buy Iranian oil, conduct payments, or in other ways support trade with Tehran. Among the most important potential targets for the oil market is China, which remains a large buyer of Iranian crude.

For traders, not only the possible effect of sanctions on Iranian exports matters. Due to the confrontation between the US and Iran, oil shipments through the Strait of Hormuz, one of the key routes of the global energy market, remain significantly limited.

It is the combination of the risk of further reduction of Iranian supplies, possible secondary sanctions against buyers, and shipping problems that has returned a significant geopolitical premium to the market.

At the same time, after a sharp jump on Thursday, quotes retreated somewhat from intraday highs. However, even near $93 for Brent, the weekly growth remains one of the strongest in recent times.

Based on materials: Bloomberg, MarketWatch