US issues new sanctions on Iran, tensions rise in the Middle East, oil prices "pocket" nearly 2%

Oil prices today, March 21. At the end of the trading session on March 20, oil prices "pocketed" nearly 2%, supported by news that the US issued new sanctions related to Iran and increased tensions in the Middle East.

Oil prices today, March 21, oil prices 'pocketed' nearly 2%, supported by news of the US issuing new sanctions related to Iran, tensions in the Middle East. (Source: Oilprice)

Brent crude rose $1.22, or 1.72 percent, to $72 a barrel. WTI crude for April delivery, which expires on March 20, rose $1.10, or 1.64 percent, to $68.26 a barrel. WTI crude for May delivery rose $1.16, or 1.73 percent, to $68.07 a barrel.

According to Reuters , on March 20, the US issued sanctions related to Iran, targeting for the first time entities including an independent Chinese oil refinery and vessels supplying crude oil to such processing plants. China is the largest importer of Iranian oil.

This is Washington's fourth round of sanctions on Iran's oil sales since US President Donald Trump announced in February that he would reimpose a "maximum pressure" campaign on Iran to reduce its exports to zero. Iran reportedly produces more than 3 million barrels of crude oil per day.

Phil Flynn, senior analyst at Price Futures Group, commented that this new round of sanctions is the catalyst and the driving force for oil prices to increase.

Also related to oil supply, OPEC+ has issued a new schedule for seven member countries, including Russia, Kazakhstan and Iraq, to ​​continue cutting oil production to compensate for overproduction as agreed. Accordingly, monthly production will decrease by between 189,000 and 435,000 barrels/day and the cut period will last until June 2026.

Meanwhile, US oil inventories rose by 1.7 million barrels, three times higher than analysts' expectations for an increase of 512,000 barrels.

Limiting gains during the session was a slight rise in the dollar after the US Federal Reserve said it was in no rush to cut interest rates further this year due to uncertainties surrounding US tariffs.

The US central bank decided to keep interest rates unchanged but maintained its forecast for two 25 basis point rate cuts by the end of the year.

Rate cuts typically boost economic activity and energy demand, but some analysts say oil prices will likely see a more uneven trend in the near term.

Senior market analyst Kelvin Wong at OANDA predicts the oil market will trend strongly higher, with China's stimulus measures and renewed hostility between Israel and Hamas driving the price increase.

Global risk premiums rose after Israel launched a new ground offensive in Gaza on March 19, breaking a nearly two-month ceasefire.

Amid the uncertainty, the threat of sanctions has resurfaced as the Trump administration takes a tougher stance on Venezuela, Iran and Russia, according to analysts at JP Morgan. JP Morgan expects Brent crude to recover to $70 to $75 in the coming months, before falling below $70 and ending the year at $60, averaging about $73 a barrel.

Domestic retail prices of gasoline on March 21 are as follows:

E5 RON 92 gasoline is not more than 19,695 VND/liter.

RON 95-III gasoline is not more than VND 20,087/liter.

Diesel oil not more than 17,893 VND/liter.

Kerosene not more than 18,118 VND/liter.

Fuel oil not exceeding 16,955 VND/kg.

The above domestic retail price of gasoline and oil was adjusted by the Ministry of Finance - Industry and Trade at the price management session on the afternoon of March 20.

Because world oil prices fluctuate up and down depending on each product, domestic oil prices also increase and decrease depending on the product. E5 RON 92 gasoline price increased by 414 VND/liter, RON 95-III gasoline increased by 438 VND/liter, kerosene increased by 28 VND/liter, diesel decreased by 5 VND/liter, and fuel oil decreased by 40 VND/kg.

Source: https://baoquocte.vn/gasoline-price-to-date-213-my-ban-hanh-lenh-trung-phat-iran-moi-cang-thang-gia-tang-o-trung-dong-gia-dau-bo-tui-gan-2-308378.html