Oil Posts Weekly Gain on Geopolitical Tensions
Oil posted a weekly gain as renewed concerns over the Russia-Ukraine conflict and fresh US sanctions on Iran’s energy trade fuelled supply risks. International benchmark Brent crude traded at $67.04 per barrel, up 1.9% from last week’s close of $65.77. US benchmark West Texas Intermediate (WTI) stood at $63.31 per barrel, an increase of 1.6% from last Friday’s close of $62.32.
Ukraine’s military reported “one of the largest air attacks of the year,” killing one person and injuring 15, while President Volodymyr Zelensky accused Moscow of showing no willingness to pursue peace. He reiterated calls for tougher sanctions and tariffs.
US President Donald Trump, speaking on The Todd Starnes Show, said the outlook for peace would become clearer within two weeks. “We are going to know one way or the other,” he said, adding that Washington may need to “take a different tack” if no progress is made.
The renewed escalation in violence, despite peace efforts, has intensified supply concerns and added upward pressure on crude prices. Meanwhile, the US imposed sanctions on two China-based terminal and storage operators accused of facilitating the import of millions of barrels of Iranian oil.
The move marks the fourth round of penalties on Chinese firms involved in Tehran’s crude trade, which Washington says finances terrorism and regional instability. Tightening restrictions on Iran’s oil flows have reinforced supply-side pressures, underpinning crude prices.
Investors are also awaiting Federal Reserve Chair Jerome Powell’s remarks at the Jackson Hole Economic Policy Symposium later on Friday for signals on potential September rate cuts, which could boost economic growth and fuel demand. CBN Sells $166m to Banks, FX Forward Contracts Depreciate
