Overview
- President Donald Trump announced a campaign of intensified economic isolation against Iran on Thursday, warning countries and firms that help Tehran they could face severe economic consequences.
- Brent crude rallied to about $93 per barrel and U.S. WTI rose into the mid-$80s as futures extended a multi-day gains streak on concern over supply risks.
- Brokers and traders said markets have begun to price the chance of tighter Iranian crude exports and renewed disruption risks around the Strait of Hormuz.
- U.S. diesel markets are already under acute stress with diesel crack spreads hitting roughly $100 per barrel this week, signaling shortages in refined fuel even while crude remains available.
- Analysts and prediction markets note large uncertainty over which targets Washington will sanction and how strictly rules will be enforced, making near-term price moves dependent on follow-up Treasury actions and any changes in shipping through the Hormuz chokepoint.