Oil Prices Climb as U.S. Sanctions on Iran Stoke Supply Fears

Oil prices rose for a second day on Tuesday as the U.S. imposed fresh sanctions on Middle Eastern producer Iran, heightening concerns that supply might tighten.

Brent crude futures rose 38 cents, or 0.51%, to $75.16 a barrel by 0217 GMT. U.S. West Texas Intermediate crude futures gained 43 cents, or 0.61%, to $71.13 a barrel. Both contracts advanced in Monday’s session after a $2 drop on Friday.

WTI is seeking support between $65 and $70 a barrel, Tony Sycamore, market analyst with IG, noted. "Provided it holds above here, a recovery back will follow."

On Monday, the U.S. imposed new sanctions on more than 30 brokers, tanker operators, and shipping companies involved in transporting Iranian oil. President Donald Trump has stated his aim to bring Iran’s crude exports to zero.

Iran, the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), pumped 3.2 million barrels per day in January, according to a Reuters survey of OPEC output.

However, gains were capped by an uncertain demand outlook.

President Trump said on Monday that tariffs against Canadian and Mexican imports, set to take effect on March 4, remain "on time and on schedule" despite efforts by both countries to address his concerns over border security and fentanyl. Analysts suggest the tariffs could dampen global oil demand growth.

Meanwhile, in Europe, Ukraine hosted European leaders to mark the three-year anniversary of Moscow’s invasion, though U.S. officials were absent, highlighting Trump's warming ties with Russia.

Markets view Trump’s closer relations with Moscow as a potential signal of an easing in sanctions on Russia, which could add to global oil supply.

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