Oil prices edged higher on Monday, recovering some of Friday’s sharp losses as new U.S. sanctions on Iran and Iraq’s commitment to OPEC+ quotas raised concerns about near-term supply tightness. Brent settled at $74.78 (+0.5%), while WTI closed at $70.70 (+0.4%), rebounding from multi-week lows.
The U.S. Treasury imposed fresh sanctions targeting Iran’s oil industry, but analysts noted Iranian crude exports remain elevated, leaving the long-term impact uncertain. Iraq reaffirmed its commitment to OPEC+ agreements and announced plans to compensate for overproduction while preparing to resume exports from Kurdistan.
Market structure showed signs of supply tightness, with the premium of front-month Brent over the next month’s contract reaching its highest level since February 11. However, ongoing peace talks between the U.S., France, and Russia over Ukraine could weigh on prices by potentially easing restrictions on Russian oil.
Additionally, upcoming U.S. tariff measures on Canada and Mexico could pressure global economic activity and oil demand. Analysts remain cautious, noting that markets are waiting for the next major geopolitical or economic event to drive direction.