Crude oil prices rise for second day after fresh US sanctions on Iranian oil trade

Oil gained for the second straight day on Tuesday, February 25, after the Trump administration imposed more sanctions on the Iranian oil trade.

West Texas Intermediate climbed to $71.12, up $0.41 or 0.58%, while Brent crude closed around $75.

On Monday, the United States imposed sanctions on several people and oil tankers across China, India, the United Arab Emirates (UAE) and other jurisdictions for their alleged involvement in Tehran's petroleum and petrochemical industry.

According to the Treasury Department, the sanctioned Indian companies are BSM Marine LLP, Austinship Management Pvt Ltd, Flux Maritime LLP and Cosmos Lines Inc.

The State Department, along with Treasury Department's Office of Foreign Assets Control, also imposed sanctions on 22 people and identified 13 vessels as blocked property for their alleged involvement in Iran's oil industry.

"This network of illicit shipping facilitators obfuscates and deceives its role in loading and transporting Iranian oil for sale to buyers in Asia. It has shipped tens of millions of barrels of crude oil worth hundreds of millions of dollars," the statement said, adding, "Today's action represents an initial step to realise President Trump's campaign of maximum pressure on the Iranian regime. It disrupts efforts by Iran to amass oil revenues to fund terrorists' activities."

"We will continue to disrupt such illicit funding streams for Iran's malign activities," it added.

Meanwhile, this marks the second round of sanctions on the sale of Iranian oil since President Trump issued the National Security Presidential Memorandum 2, calling for the US to "drive Iran's export of oil to zero".