Crude oil rose more than 2% to around $86.70 a barrel on Thursday, its highest level since July 24, after President Donald Trump announced a sweeping package of economic measures against Iran. The proposed restrictions are designed to cut Tehran off from international financial and commercial networks, targeting activities involving banks, businesses, shipping registries, cash transfers, and smuggling operations.
Washington is seeking to intensify economic pressure on Iran and push it toward negotiations over the conflict, its nuclear programme, and its control of the Strait of Hormuz. The United States is maintaining a blockade of Iranian ports, although crude from other Gulf producers continues to transit the strategic waterway despite heightened risks to shipping. Trump noted that substantial volumes of oil were still passing through Hormuz.
The measures were announced one day after the UAE suspended economic ties with Iran, following accusations that Tehran had launched missiles at its territory.
