US sanctions on Russia and Iran drive oil prices up amid trade policy uncertainty

Oil prices climbed on supply concerns, but uncertainty over US tariffs and OPEC+ output plans weighed on the market, stoking fears of economic disruption. Meanwhile, US Treasury Secretary Scott Bessent doubled down on strict sanctions against Russia and Iran’s energy sectors, underscoring Washington’s push for maximum pressure to shape geopolitical outcomes.

International benchmark Brent crude gained 0.27%, trading at $69.39 per barrel at 09.36 am local time (0636GMT), up from $69.20 at the previous session’s close.

US benchmark West Texas Intermediate rose 0.24%, settling at $66.15 per barrel, compared to its prior session close of $65.99.

The price increase was driven by the US administration’s statements regarding the sanctions on Russia and Iran’s energy sector.

In his speech at the Economic Club of New York yesterday, US Treasury Secretary Scott Bessent argued that the previous administration’s weak sanctions on Russian energy were one of the most important factors in the continuation of the war.

‘Sanctions will be used explicitly and aggressively for immediate maximum impact,’ Bessent said, adding that the current administration would not hesitate to keep strengthened sanctions in place and use them if they provide leverage in peace negotiations.

Recalling that the White House announced a ‘maximum pressure’ campaign on Iran last month, Bessent noted that they have launched a sanctions campaign targeting all stages of Iran’s oil supply chain, ‘We are going to shut down Iran’s oil sector and drone manufacturing capabilities,’ Bessent said.

These statements regarding Russia and Iran’s energy sector raised concerns about oil supply and supported prices upwards.

On the other hand, the uncertainty regarding the tariff policies of the US, the world’s largest oil-consuming country, and the plan of the OPEC+ group, consisting of the Organization of Petroleum Exporting Countries (OPEC) and some non-OPEC producer countries, to increase production in April continue to put downward pressure on prices.

While the 25% tariff imposed by the US administration on goods imported from Canada and Mexico entered into force on Tuesday, March 4, the existing tariffs on Chinese goods were doubled from 10% to 20%.

Yesterday, US President Donald Trump signed regulations exempting goods compliant with the US-Mexico-Canada Agreement (USMCA) from tariffs on Mexico and Canada until April 2.

Experts warn that the disruptions in global trade due to these tariffs will negatively affect economic growth and thus oil demand.

• American benchmark West Texas Intermediate
• Economic Club of New York
• OPEC
• US Treasury Secretary Scott Bessent