Oil Prices Climb on Trade Optimism and Sanctions

In a significant uptick, crude oil prices increased by over 1.5% this Wednesday. This surge comes in the wake of signals from United States President Donald Trump about his intentions to lower tariffs on Chinese imports. Such a move is anticipated to mitigate some growth concerns and potentially uplift demand.

Adding to the dynamics, the U.S. has also imposed sanctions on an Iranian oil and liquefied petroleum gas shipping network, further tightening the noose around Iran's energy exports. These developments have contributed to the bullish trend in oil prices.

Market Reactions

West Texas Intermediate (WTI) for June deliveries saw a 1.68% increase, trading at $64.69 per barrel at 5:13 am ET. Similarly, Brent crude for June settlements experienced a 1.60% rise, reaching $68.50 per barrel shortly after.