Oil prices head for second weekly rise as U.S. vows to turn up economic pressure on Iran

Oil prices were on track Friday for a second consecutive week of gains, as hopes of a swift reopening of the Strait of Hormuz continued to fade.

U.S. Treasury Secretary Scott Bessent told CNBC on Thursday that Washington will impose the “toughest sanctions in history” against Iran, echoing President Donald Trump’s threat on Wednesday of a “crushing” economic operation.

Bessent also told CNBC he did not know why crude oil prices had gained following the president’s comments, since “maximum economic pressure” meant it was “likely” there would not be a return to large-scale military attacks.

Brent crude futures were 18 cents higher at $93.96 per barrel. U.S. West Texas Intermediate futures rose 11 cents to $86.94 per barrel. Oil prices are up more than 5% for the week.

Crude oil prices eased significantly over the first two weeks in August as U.S. officials suggested a deal with Tehran could be imminent.

A hardening of Washington’s position has left the future of shipping through the Strait of Hormuz deeply uncertain, with vessel traffic remaining at a crawl amid fatal attacks.

“With the conflict not showing many signs of progressing diplomatically, the oil market is once again pricing in the failure of diplomacy,” Janiv Shah, vice president of oil markets analysis at Rystad Energy, told CNBC on Friday.

“But the bigger pressure is being felt in refined products, with diesel cracks hitting record highs amid fears of prompt supply shortages, sustained demand and thin inventory buffers.”

“While Brent could range widely depending on the scenarios outlined, we expect product markets to feel a more significant impact, with refinery constraints and energy security concerns keeping product cracks and margins elevated.”