Oil prices climb as U.S. signals stronger sanctions on Iran

Oil futures edged higher on Friday, marking a second consecutive week of gains as market participants reassessed the outlook for the Strait of Hormuz. Brent crude rose 18 cents to $93.96 a barrel and U.S. West Texas Intermediate increased 11 cents to $86.94, lifting weekly gains to more than 5%.

U.S. Treasury Secretary Scott Bessent told CNBC that Washington intends to impose the "toughest sanctions in history" against Iran, echoing President Donald Trump's earlier remarks about a "crushing" economic operation. Bessent said he could not explain the price rise following the president’s comments, noting that heightened economic pressure makes a large-scale military escalation "unlikely."

Analysts said the hardening U.S. stance has revived uncertainty over oil shipments through the Hormuz strait, where vessel traffic remains limited after recent 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.

Shah added that refined-product markets are feeling stronger pressure, with diesel spreads reaching record levels amid concerns about supply shortages, sustained demand and thin inventory buffers. He noted that while Brent prices could fluctuate widely, product markets are likely to experience a more pronounced impact due to refinery constraints and energy-security worries.