Oil prices settled more than 3% higher on Thursday, lifted by hopes for a U.S.-EU trade deal and fresh U.S. sanctions aimed at curbing Iranian oil exports. Brent crude rose $2.11, or 3.2%, to settle at $67.96 a barrel, while U.S. West Texas Intermediate (WTI) gained $2.21, or 3.5%, to $64.68. Both benchmarks ended the holiday-shortened week up about 5%, their first weekly gains in three weeks.
U.S. President Donald Trump and Italian Prime Minister Giorgia Meloni voiced optimism over easing trade tensions with Europe, raising hopes that a deal could help limit tariff-driven damage to global demand. “We’re going to have very little problem making a deal with Europe or anybody else,” Trump said.
Sanctions announced Wednesday by the U.S. targeted Chinese “teapot” refiners—smaller, independent facilities—and other entities allegedly moving Iranian oil, escalating efforts to pressure Tehran during ongoing nuclear talks. Analysts noted the sanctions could further tighten supply.
OPEC said it had received updated plans from Iraq, Kazakhstan, and others to deepen production cuts to make up for earlier overproduction. Analysts from Gelber and Associates said OPEC+ reaffirmed its willingness to act if further supply support is needed.
Despite recent gains, several institutions including OPEC, the IEA, Goldman Sachs, and JPMorgan trimmed oil demand and price forecasts this week, citing the broader economic fallout from Trump’s tariffs and retaliatory trade actions.