Crude Prices Jump 2% as US Plans to End Iran’s Oil Exports

Brent crude futures settled at $64.76 a barrel after chalking up $1.43 or 2.26 per cent and the US West Texas Intermediate (WTI) crude finished at $61.50 a barrel after it gained $1.43 or 2.38 per cent.

US Energy Secretary, Mr Chris Wright, said on Friday that his country could stop Iran’s oil exports as part of President Donald Trump’s plan to pressure Iran, a member of the Organisation of the Petroleum Exporting Countries (OPEC), over its nuclear programme.

Since he returned to the White House in January, President Donald Trump, who in his first term withdrew the US from a 2015 nuclear accord with Iran and clamped down on its oil exports, has again brought a tougher approach to the Middle Eastern power over its nuclear work.

It had affected the country’s oil exports but Iranian oil exports recovered under former President Joe Biden, who became president after Mr Trump’s first term, and so far in 2025 have yet to show a decline, according to industry data.

China, which opposes unilateral sanctions, buys the bulk of Iran’s shipments.

This comes as President Trump’s new tariff regime forced traders to reassess the geopolitical risks facing the crude market.

China announced on Friday it will impose a 125 per cent tariff on US goods starting on Saturday, up from the previously announced 84 per cent after the American President raised tariffs against China to 145 per cent on Thursday.

President Trump this week paused heavy tariffs against dozens of other trading partners.

However, market analysts noted that a prolonged dispute between the world’s two biggest economies is likely to reduce global trade volumes and disrupt trading routes, weighing on global economic growth and reducing demand for oil.

Some noted that despite the pause, which is only for 90 days, has already inflicted damages on the markets.

The US Energy Information Administration (EIA) on Thursday lowered its global economic growth forecasts and warned that tariffs could weigh heavily on oil prices.

It also reduced its US and global oil demand forecasts for this year and next year.

Reuters also predicted that China’s 2025 economic growth is expected to fall relative to last year’s pace as US tariffs raise pressure on the world’s top oil importer.