Oil prices headed for a weekly loss even as the U.S. Treasury rolled out tougher sanctions on Iran and tanker traffic through the Strait of Hormuz stayed weak. The Wall Street Journal reports the Trump administration has ruled out returning to the ceasefire terms it struck with Iran in June, favoring economic pressure instead.
Prices slide despite no path to peace
Crude oil headed for another weekly loss with no sign of progress toward peace between Iran and the United States. Brent crude was trading at $89.17 per barrel, with West Texas Intermediate at $83.19 per barrel. Brent was down 5.3% over the week, and WTI was set for a 4.3% decline, Reuters reported.
The decline comes despite vessel-tracking companies reporting that tanker traffic in the Strait of Hormuz remains much weaker than it was before the war. It also comes despite the U.S. Treasury announcing what it called the toughest sanctions in history to force Iran to reopen the Strait of Hormuz.
Washington rules out a return to the June ceasefire
The Wall Street Journal reported this week that the Trump administration had repeatedly told mediator parties it had no interest in returning to the terms of the ceasefire the U.S. and Iran agreed in June. That deal did not last a month.
Washington and the president appear focused on economic pressure instead. White House spokeswoman Anna Kelly, quoted by the Wall Street Journal, said: "The naval blockade remains in full force and effect." She added that Operation Economic Outcast is underway to sever the regime's remaining economic lifelines, and that no talks with Iran are scheduled.
China's role undercuts the sanctions push
Some observers question how effective Operation Economic Outcast can be, since China's cooperation is key given its status as Iran's biggest trade partner. Yet China has repeatedly said sanctions are not the most productive way to effect political change.
Source: Investing.com
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