Global oil prices have surged after the United States announced tougher economic sanctions against Iran, pushing crude prices to their highest level since July 24.

Brent crude rose by $2.20, or 2.4%, to $93.82 per barrel, according to media reports. US West Texas Intermediate crude also gained $2.33 to reach $88.16 per barrel.

Fifth straight session of gains

The rise marked the fifth consecutive trading session of gains for both major oil benchmarks. Their latest levels have increased concerns over the possible impact of US-Iran tensions on global energy supplies.

US announces tougher Iran sanctions

The latest jump came after US Treasury Secretary Scott Bessent announced plans for some of the toughest sanctions ever imposed on Iran.

Bessent said the United States would also take action against countries that continue doing business with Tehran. The move could put additional pressure on Iran’s economy and international trade.

Sanctions target Iran’s proxy groups

According to CNBC, Bessent said the new sanctions are aimed at restricting the Iranian government’s ability to support and operate through proxy groups.

The announcement has added to uncertainty in global energy markets, with traders closely watching whether the new US measures could affect Iran’s oil exports.

Global fuel costs in focus

Iran is a major oil producer, and any restrictions on its ability to sell crude could tighten global supplies. This could keep oil prices under pressure in the coming days, particularly if tensions between Washington and Tehran escalate.

For oil-importing countries, sustained higher crude prices could also increase fuel costs and add pressure to inflation.