Oil prices settled higher on Friday, marking a second consecutive weekly gain as fresh U.S. sanctions on Iran and OPEC+ output plans signaled tighter supply. Brent crude rose 16 cents (0.2%) to $72.16, while WTI increased 21 cents (0.3%) to $68.28. For the week, Brent gained 2.1% and WTI 1.6%, their largest increases since early January.
The U.S. Treasury imposed new Iran-related sanctions on Thursday, targeting an independent Chinese refiner and vessels supplying Iranian crude. Analysts see this as a warning that Chinese buyers of Iranian oil are not immune to U.S. pressure. This marks the fourth round of sanctions since Trump pledged to drive Iran’s oil exports to zero. UBS analysts expect these sanctions to make shippers more cautious, potentially reducing Iranian crude exports by 1 million barrels per day from February’s 1.8 million bpd level.
Oil prices also gained support from OPEC+’s plan for seven members to make additional output cuts of 189,000 to 435,000 bpd until June 2026 to compensate for overproduction. However, OPEC+ also confirmed a modest 138,000 bpd increase starting in April, partially reversing past cuts. Analysts believe the plan will cap production growth in the coming months, but market participants are watching for compliance, particularly from Iraq, Kazakhstan, and Russia, before fully supporting the initiative.