WASHINGTON (dpa-AFX) - Oil prices were sharply higher on Wednesday, extending gains from the previous session because of new Iran sanctions and industry data showing a drop in U.S. crude oil inventories.
Benchmark Brent crude futures jumped 1.6 percent to $68.51 a barrel in early European trade, while WTI crude futures were up 1.8 percent at $64.82.
Both contracts settled nearly 2 percent higher on Tuesday after the U.S. imposed fresh sanctions on Iran amid ongoing nuclear talks.
The U.S. announced new sanctions targeting Iranian national and liquified petroleum gas magnate Seyed Asadoollah Emamjomeh and his corporate network.
'Emamjomeh and his network sought to export thousands of shipments of LPG-including from the United States-to evade U.S. sanctions and generate revenue for Iran,' said Treasury Secretary Scott Bessent.
The sanctions were part of Washington's broader strategy to curtail Iran's energy revenues, which are believed to fund destabilizing activities in the Middle East.
Crude oil prices were also benefiting from the latest developments on the trade front, with U.S. President Donald Trump admitting that the 145 percent tariffs on China are 'very high' and they will come down substantially.
Meanwhile, data from the American Petroleum Institute showed U.S. crude oil inventories fell by around 4.6 million barrels last week. Official stockpile data will be published later in the session.
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