Oil finishes sharply higher even as Trump says no attacks on Iran before midterms

Donald Trump has ruled out the possibility of launching US military strikes on Iran before the US midterm elections scheduled for November 3. In a post on his social media platform, Truth Social, Trump stated that the two nations are engaged in "productive discussions" about ending the ongoing six-month conflict. The war, which escalated in February, has negatively impacted Trump's domestic approval ratings and is a key concern for Republicans in the upcoming elections.

Recent polls show that 60% of Americans, including a quarter of Republicans, disapprove of Trump's handling of the situation in Iran.

The conflict has also led to a significant increase in gasoline prices, which voters have identified as their top concern. Despite claims that oil prices would drop following the election, Trump has not presented a clear plan for ending the war. Iran and the US have exchanged proposals in recent weeks to resolve the conflict and reopen the Strait of Hormuz, a crucial global energy shipping route. However, Trump rejected Iran's latest offer.

In response to the ongoing tensions, the US Treasury Department imposed new sanctions on Iran on Thursday. The sanctions target individuals, networks, and 17 vessels involved in transporting Iranian crude, oil products, and petrochemicals. This move is part of the Treasury's "Operation Economic Outcast," aimed at weakening Iran's financial resources related to the war, missile development, cyberattacks, and the Islamic Revolutionary Guard Corps (IRGC).

The sanctions target the remaining illicit maritime infrastructure of Iran and strengthen international pressure on Tehran.

The sanctions are expected to have a limited impact on Iran's oil sales, as Iran currently has only about 20 million barrels of crude oil left on vessels outside the US blockade, located in Singapore, Malaysia, and China. Additionally, Iran has halted loading and unloading of crude oil vessels due to the blockade and sanctions. Although some analysts suggest that the impact of the sanctions will be minimal, the Treasury emphasized that this economic warfare, conducted "in the rearview mirror," is intended to generate headlines rather than achieve tangible results.