Brent crude nears $94 amid Middle East tensions following U.S. sanctions announcement on Iran

Brent crude oil prices surged 2.3% to approach $94 per barrel as geopolitical tensions between the United States and Iran escalated. The price of Brent crude for October delivery climbed to $93.70 a barrel after European markets closed, having touched an intraday high of $94.71. West Texas Intermediate (WTI) crude also advanced, rising 1% to $86.70 a barrel.

The latest increase in oil prices is linked to U.S. President Donald Trump's announcement of an economic offensive against Iran, described as the most impactful operation ever launched against a country. The initiative aims to sever the Islamic Republic's financial and economic support channels. Trump specified that the measures would target ways Iran evades sanctions, including oil smuggling, foreign exchange trading, cash transfers, exchange houses, ship registries, and shell companies.

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announced yesterday an economic offensive against Iran that he described as the operation of greatest impact ever undertaken against a country, with which he seeks to cut off the channels of financing and economic support to the Islamic Republic.

Adding to the tension, U.S. forces reportedly established a maritime corridor in the Strait of Hormuz to facilitate the daily export of millions of barrels of oil, according to Axios. In response, Iran's Revolutionary Guard issued a warning on Thursday, vowing to deploy weaponry with "more destructive power" than in previous confrontations, signaling a significant escalation in the standoff.

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will use weaponry with 'more destructive power' than in previous confrontations