Oil rises as Trump imposes new Iran sanctions, U.S. equities rally
Oil rebounded on Thursday after President Donald Trump imposed new sanctions on Iran and strong earnings from Meta and Microsoft supported U.S. equities.
U.S. crude oil futures rose $1.03, or 1.77%, to close at $59.24 per barrel, while global benchmark Brent gained $1.07, or 1.75%, to settle at $62.13.
Trump said Thursday any country or person that buys oil or petrochemicals from Iran will not be allowed to do any business with the U.S.
Oman said on Thursday that the next round of U.S.-Iran nuclear talks provisionally planned for Saturday, May 3 would be rescheduled for logistical reasons.
Earlier, concern about higher supply weighed on prices. Saudi Arabia is telling allies and industry experts that it is unwilling to prop up the oil market with supply cuts and can manage a prolonged period of low prices, sources told Reuters.
Several OPEC+ members will suggest the group accelerates output hikes in June for a second consecutive month, three people familiar with OPEC+ talks have said. Eight OPEC+ countries will meet on May 5 to decide a June output plan.
Meanwhile, the U.S. economy contracted for the first time in three years in the first quarter, data showed on Wednesday, swamped by a flood of imports as businesses raced to avoid higher costs from tariffs and underscoring the disruptive impact of President Donald Trump’s unpredictable trade policy.
Trump’s tariffs have made it probable the global economy will slip into recession this year, a Reuters poll suggested.
Source: Rueters
