Brent rises as US unveils new Iran sanctions
The front-month ICE Brent contract has moved $1.41/bbl higher on the day, to trade at $68.56/bbl at 09.00 GMT.
IMAGE: Oil pump jack with upward arrows depicting price gains. Getty Images
Upward pressure:
Brent has moved higher following the weekly oil inventory report from the American Petroleum Institute (API).
US crude oil inventories fell by 4.6 million bbls in the week ending 18 April, according to the API. A drop in US crude stocks typically indicates higher demand and can lend some support to Brent's price.
Brent’s price also gained as market participants assessed the impact of new US sanctions on Iran.
Washington has announced fresh sanctions targeting an Iranian shipping magnate whose vessels have allegedly transferred “hundreds of millions of dollars' worth of Iranian liquid petroleum gas and crude oil,” the US treasury department said.
Downward pressure:
Brent’s price gains were capped by negative sentiment in the broader financial markets after the International Monetary Fund (IMF) lowered its 2025 global economic growth forecast.
The agency that represents 190 member countries projects global gross domestic product (GDP) growth to drop to 2.8% in 2025, down from 3.3% projected earlier in January. In 2026, it expects world GDP to grow by 3%.
The IMF has lowered its global economic growth projections compared to three months ago, pointing to weak oil demand driven by ongoing trade tensions between major consumers, the US and China.
It also cited the impact of US tariff actions and mounting uncertainties over trade and monetary policies.
By Aparupa Mazumder
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