Crude oil price jumps over 1% as US issues fresh threats to Iran

Crude oil prices surged over 1% on Thursday after the United States issued fresh sanctions targeting Iran, triggering worries about potential disruptions to global oil supplies. The Multi Commodity Exchange (MCX) reported that September crude oil futures rose 1.18% to ₹8,247 per barrel, while the October contract gained 1.14% to ₹8,097 per barrel.

Analysts noted that this marked the fifth consecutive day of gains for MCX crude futures, as investors assessed the impact of the latest US pressure on Iran's oil trade. The Strait of Hormuz, a crucial shipping lane, once again emerged as a key factor in the market's outlook. Similarly, Brent crude futures for October delivery climbed 2.13% to $93.57 per barrel, and West Texas Intermediate (WTI) crude oil for the same contract increased 2.22% to $86.26 per barrel.

US President Donald Trump announced a new campaign to isolate Iran economically, warning countries and entities supporting Tehran of severe economic consequences. However, details on the specific measures or targeted entities remained unclear. US Treasury Secretary Scott Bessent stated that Washington would intensify efforts to isolate Iran economically.

Market participants are expected to closely monitor potential supply disruptions, retaliatory actions around the Strait of Hormuz, and the impact of sanctions on Iranian crude flows.