WANA (May 02) – Global oil prices rose following threats from U.S. President Donald Trump to impose secondary sanctions on those purchasing oil from Iran.

 

In response to Trump’s threats, the global oil market reacted with a 2% increase. Brent crude rose by $1.07 or 1.8%, trading at $62.13 per barrel. Similarly, West Texas Intermediate (WTI) futures climbed $1.03 or 1.8%, reaching $59.24 per barrel.

 

Yesterday, Trump reiterated his hardline stance, stating: “All purchases of Iranian oil or petrochemical products must stop immediately, and any country or individual buying oil from Iran will face secondary sanctions without delay.”

 

These remarks came after the postponement of the anticipated Iran–U.S. negotiations. According to Iran’s Deputy Foreign Minister Abbas Araghchi, the next round of talks was expected to be held on Saturday (May 3), but both Iran and Oman announced a rescheduling. Ismail Baghaei, spokesperson for Iran’s Foreign Ministry, noted that the change was proposed by Oman’s Foreign Minister and that a new date would be announced later.

 

Andrew Lipow, president of Texas-based consulting firm Lipow Oil Associates, stated: “If the Trump administration successfully enforces secondary sanctions on Iranian oil purchases, it could lead to a production cut of about 1.5 million barrels per day. Such a drop in supply would allow Trump to press ahead with stricter sanctions, especially as OPEC+ is already producing above its quota and considering further increases.”

 

Several news agencies reported that some OPEC+ members are planning to propose accelerating output increases for a second consecutive month in June. According to three OPEC+ sources, eight member countries are scheduled to meet on May 5 to discuss the proposal.

 

Meanwhile, Saudi Arabia has informed allies and industry experts that it is not inclined to support the market by reducing production and is prepared to manage price declines over an extended period.

 

On the demand side, data released Wednesday showed that the U.S. economy recorded negative growth in the first quarter for the first time this year. A rush by businesses to avoid added costs from Trump’s tariffs, along with a saturated market due to imports, contributed to the economic contraction—highlighting the damaging impact of Trump’s unpredictable trade policies.

 

According to recent media surveys, Trump’s tariffs have increased the likelihood of a global economic slowdown this year.