West Texas Intermediate (WTI) crude oil prices continued their upward trajectory for the second consecutive session, reaching approximately $63.90 per barrel during Asian trading hours on Wednesday. This increase is largely driven by new sanctions imposed by the United States on Iran, coupled with indications of tightening global oil supply.
On Tuesday, the US implemented fresh sanctions targeting Seyed Asadoollah Emamjomeh, a key figure in Iranian liquefied petroleum gas (LPG) and crude oil shipping, and his affiliated corporate network. According to the US Treasury, Emamjomeh’s organization has been instrumental in facilitating the export of Iranian oil products worth hundreds of millions of dollars to global markets.
The bullish momentum was further fueled by a notable decline in US crude inventories. The American Petroleum Institute (API) reported a drawdown of approximately 4.6 million barrels last week, as confirmed by market sources. Official data from the Energy Information Administration (EIA) is expected later on Wednesday, with analysts from Reuters forecasting a more modest drop of 800,000 barrels.
Crude prices also benefited from a more positive market sentiment. On Tuesday, Treasury Secretary Scott Bessent described the ongoing tariff dispute as “unsustainable,” suggesting that the US may ease trade tensions. Meanwhile, US President Donald Trump reassured the markets that he had no plans to remove Federal Reserve Chair Jerome Powell, addressing concerns about the independence of the central bank.
Additionally, President Trump expressed optimism regarding US-China trade negotiations, highlighting progress in talks. While ruling out extreme tariff hikes, he confirmed that some tariffs would remain in place, as efforts continue to negotiate a trade deal aimed at reducing the broader tariffs imposed earlier this month.
