Oil fluctuation is driven by the impact of sanctions on Iran and the dollar is declining economy

Oil prices changed their path to ascend in the latest transactions affected by the sanctions imposed on Iran and Russia, and crude prices began today’s transactions to land with the increasing concerns about the impact of uncertainty about US customs duties and the increase in OPEC Plus coalition production.

Brent crude rose 0.53% to $ 70.73 a barrel, in the latest transactions and US West Texas Intermediate crude reached $ 67.40, up 37 cents.

Last week witnessed the seventh weekly loss in a row of West Texas Intermediate crude, the longest loss series since November 2023, while Brent crude decreased for the third consecutive week.

Iran and Russia sanctions

The policies of US President Donald Trump have sparked a disturbance in the markets worldwide, and then imposed customs tariffs on the largest oil suppliers of Canada and Mexico, while customs duties were also raised on Chinese goods. China and Canada were reposed to impose counter -customs definitions.

The P -MM analyst, Tamas, said that investors are looking at the uncertainty about the US tariffs as negative, but the possible sanctions against Iran and Russia may provide support in the near term.

Looking at the major image, the continuous uncertainty is likely to make any high -term oil height.

Oil prices recovered from their lowest levels in 6 months on Friday after Trump said that the United States would increase sanctions on Russia if it fails to reach a ceasefire agreement with Ukraine.

Two people familiar with the matter told Reuters that the United States is also studying ways to reduce sanctions on the Russian energy sector if Russia agreed to end its war with Ukraine.

Alexander Novak, Russian Deputy Prime Minister, said on Friday that OPEC Plus may reflect the decision in case of imbalance in the market.

Trump also seeks to strangle Iranian oil exports as part of the efforts to pressure the country to curb its nuclear program, and the Iranian Supreme Leader, Ayatollah Ali Khamenei, said on Saturday that his country will not give in to negotiations.

Later this week, investors will evaluate the monthly reports issued by the International Energy Agency and OPEC for the expectations of supply and demand.

Currency

The dollar continued its losses after suffering great losses last week due to the weak US labor market, while concerns about a global trade war pushed investors to safe havens, which raised the Swiss yen and franc.

The markets were disturbed as a result of intense trade tensions all over the world as a result of the customs duties announced by Trump and retracted some of them, amid fears of the slowdown in the American economy.

This led to investors losing confidence in the American economy, which was outperforming its counterparts, and in the markets for currencies, investors reduced the net long -term centers in dollars to 15.3 billion dollars from the highest level in 9 years, which amounted to 35.2 billion dollars in late January.

Investors who fear risk sought to buy the Japanese yen and the Swiss franc, prompting the two currencies to the highest levels in several months. The yen today rose 0.8% to 146.86 dollars, which is slightly less than the highest level in the 5 months that he touched on Friday.

The Swiss franc reached the highest level in 3 months at 0.87665 dollars in early trading, before declining to 0.8765 in the latest transactions, and the euro rose 0.14% to $ 1.0848 after he recorded the best weekly performance since 2009 last week with the support of financial reforms that changed the rules of the game in Germany.

The dollar index, which measures the US currency for 6 other currencies, reached 109.72 today, Monday, to remain near the lowest level in the 4 months that he touched last week.

The dollar fell by more than 3% last week against its main competitors, registering its weakest weekly performance since November 2022 with investors concern about customs duties and their impact on the economy.

Investors’ concern increased, that Trump resonated in an interview with Fox News yesterday about speculation whether the United States had faced stagnation amid stock market fears about customs duties procedures on Mexico, Canada and China.

“There is a transitional period, because what we do is very large. We are returning wealth to America,” Trump told the program.

The market analyst at IG, Tony Sikammore said the comments are exactly the type that does not want high -risk assets hearing after 3 difficult weeks.