Oil set for second weekly gain as US ramps up pressure on Iran

Brent crude futures dipped 17 cents to $93.61 a barrel by 0802 GMT on Friday, yet appeared headed for a second consecutive weekly rise, according to The Express Tribune. West Texas Intermediate eased 36 cents to $86.47. The decline followed a US threat of sweeping new sanctions against Iran, with Treasury Secretary Scott Bessent saying such steps could make fresh large-scale military action less necessary.

Brent has climbed more than 5.8% and WTI 4.8% this week, and both reached levels not seen since July 24 in the last session. ANZ analyst Soni Kumari attributed the rally to Washington's firmer stance, which includes a renewed blockade and stricter sanctions targeting Iranian oil sales. The earlier US-Iran peace agreement lapsed this week, and neither side has moved to restart negotiations.

Supply constraints persist, with seven commodity vessels passing through the Strait of Hormuz on Thursday, half the previous day's number, Kpler ship-tracking data showed. Before hostilities involving the US, Israel and Iran erupted in late February, the waterway handled about a fifth of worldwide oil and LNG shipments. Kumari also said markets are adjusting to the likelihood that trade and supply will not return to prewar conditions soon, while Ukraine's General Staff said its forces hit Russia's TANECO refinery and Tamanneftegaz terminal.