Why Oil Is Up Nearly 1%: Sanctions, Stocks, and Trump’s New Tune

Oil prices got a boost of nearly 1% on Wednesday, continuing their climb from the previous day. What’s driving this uptick? A mix of new U.S. sanctions on Iran, a drop in U.S. oil inventories, and a surprising change in tone from Donald Trump. Let’s break it down.

First, the U.S. rolled out fresh sanctions targeting a major player in Iran’s oil and gas shipping industry, Seyed Asadoollah Emamjomeh, and his network. This group moves massive amounts of Iranian oil and gas to global markets, raking in hundreds of millions of dollars. The sanctions aim to tighten the screws on Iran’s energy exports, which could mean less oil hitting the market and, in turn, higher prices.

Meanwhile, U.S. crude oil stockpiles took a dip, signaling stronger demand or tighter supply-both of which tend to push prices up. On top of that, Trump dialed back his recent criticisms. After days of slamming Federal Reserve Chair Jerome Powell for not cutting interest rates, he eased off, calming markets. He also hinted at possibly lowering tariffs on China, which boosted investor confidence and gave oil prices another nudge upward.

By early Wednesday, Brent crude, a global benchmark, was up 61 cents (0.9%) to $68.05 a barrel. U.S. West Texas Intermediate (WTI) crude wasn’t far behind, climbing 60 cents (0.94%) to $64.27 a barrel. These gains reflect a market that’s feeling more optimistic but still watching global events closely.

In short, it’s a mix of geopolitics, supply shifts, and political surprises keeping oil traders on their toes. With sanctions tightening and Trump softening his stance, the oil market is in for an interesting ride.