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EMEA Oil Update: Brent Holds Near 1-Month Peak on Potential US Sanctions on Iran

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Brent crude futures eased on Friday, hovering near its highest level in a month, while Murban hit a record high recently supported by global supply anxieties and US plans for economic sanctions on Iran.

Brent eased 0.4% to $93.37 per barrel and hovered near its highest in a month, while Murban crude futures closed at a record high of $101.07/bbl on Thursday and were not trading at the time of publication of this update.

"Brent rose to its highest level in almost four weeks near $95 after President Trump threatened Iran with economic warfare, before paring the advance to trade near $93.5," Saxo Bank analysts said.

US Treasury Secretary Scott Bessent reportedly stated that the US will pursue maximum economic pressure and unveil details of its toughest sanctions package yet on Monday, while suggesting that aggressive economic isolation makes a large-scale military restart unlikely.

Analysts noted that traders remain concerned over potential blowback from China, a major buyer of Iranian oil.

"It is unlikely to include targeting Iran's oil sales, as that may risk a fresh confrontation with China just before Trump is due to meet China's President Xi in the US next month," ANZ analysts said.

"What is clear is that there is considerable doubt on a near-term deal to reopen the Strait of Hormuz," ANZ added.

Commercial vessel traffic through the Strait of Hormuz remained heavily constrained due to attacks and security risks, with a Joint Maritime Information Center note confirming an attack in the waterway.

Kpler reported that Middle East refinery runs remain depressed at 7.3 million barrels per day down from 9.9 million barrels per day in February with full operational recovery delayed until at least the Q2 of 2027 due to physical damage and restricted export lanes.

The US Treasury's Office of Foreign Assets Control sanctioned three individuals linked to Iran's Islamic Revolutionary Guard Corps-Qods Force and Hezbollah.

Meanwhile, Houthi forces claimed responsibility for two drone attacks targeting an Aramco facility and Najran airport in Saudi Arabia.

Amid diplomatic stalemates between Washington and Tehran, ongoing regional risks continue to support elevated crude and refined product prices, analysts added.

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