FX.co ★ Oil Heads for Weekly Gain

WTI crude futures climbed beyond $68 per barrel on Friday, marking their most significant weekly gain since early January. The rise was driven by heightened supply concerns stemming from recent US sanctions on Iran, along with OPEC+ production cuts. On Thursday, the US Treasury imposed new sanctions related to Iran, targeting a Chinese refiner for the first time. This action represents the fourth round of sanctions since February when President Trump pledged to apply "maximum pressure" to halt Iran’s oil exports entirely. Analysts forecast a decline in Iranian crude exports by 1 million barrels per day as a result of these intensified sanctions. Concurrently, OPEC+ declared additional production cuts for seven member countries, ranging from 189,000 to 435,000 barrels per day monthly, extending until June 2026. Reductions in output by Kazakhstan, Iraq, and Russia are anticipated to balance plans for increased production over the coming year. The oil market is also buoyed by geopolitical risk premiums, as Israel initiated a new ground offensive in Gaza and the US continued airstrikes on Iran-backed Houthi rebels in Yemen.