Oil prices rise amid concerns over global supply disruption

Oil drilling rigs

Oil prices rose today, Feb. 25, widening gains for the second session after Trump imposed new sanctions on entities involved in transporting Iranian supplies, in addition to escalating global trade and geopolitical tensions.

Brent crude was trading up 0.44% at $75.11 a barrel, at 09:21 am Makkah time. West Texas Intermediate (WTI) crude rose 0.55% at $71.09 per barrel.

US President Donald Trump imposed on Feb. 24 new sanctions on Iran's so-called shadow fleet, targeting more than 30 brokers, tanker operators and shipping companies for their role in transporting Tehran's supplies.

He said in a statement that he aims to prevent Iran—the third largest producer in OPEC—from exporting oil permanently, Reuters reported.

Global refining margins are currently enjoying momentum, with refiners in the US and northwest Europe benefiting from heating demand due to the current cold snap, Neil Crosby, a Commodity Analyst at Sparta Commodities, said in a note.

Separately, Trump said in statements yesterday that tariffs on imports from Canada and Mexico will be implemented on schedule on March 4—after they were postponed for 30 days—and analysts believe that this measure will negatively affect oil prices, Reuters reported.