Crude oil price: Crude oil futures gain as markets analyse impact of US sanctions on Iran

Crude oil futures rose on Tuesday as traders examined the effects of US secondary sanctions targeting Iran. At 10:01 am on Tuesday, November Brent oil futures reached $90.71, a 0.19% increase, while October crude oil futures on WTI (West Texas Intermediate) were at $85.26, up 0.29%. September crude oil futures on MCX began at ₹8167, a 0.39% rise from the previous close of ₹8135, while October futures opened at ₹8031, up 0.50% from the prior level of ₹7991.

On Monday, US Treasury Secretary Scott Bessent disclosed an expansion of sanctions to sever Iran's economy, adding 60 individuals, entities, and vessels to the list. However, the list omitted Chinese financial institutions believed to be aiding Iran's oil trade. Treasury Secretary Bessent refused to disclose which countries would face penalties or when they would take effect.

Warren Patterson, Head of Commodities Strategy at ING Think, and Ewa Manthey, Commodities Strategist, commented that the market remained largely indifferent to Washington's efforts to pressure Iran economically, viewing the US actions as minor rather than market-altering. The US has imposed over 70 Iran-related sanctions and threatens secondary sanctions on non-compliant entities.

China, the largest purchaser of Iranian energy, remains a key player, and the timing and extent of US secondary sanctions on trading partners remains uncertain.