The Trump administration is ratcheting up sanctions pressure on Iran, threatening to sanction all commercial partners of Tehran in case they don’t wind down trade (without specifying the timelines for doing so).
At the same time, Pakistan’s mediation efforts have offset the bullish momentum following Scott Bessent’s Monday press conference, with oil market participants still hoping for some form of negotiated settlement, sending ICE Brent prices lower, to $89 per barrel.
Washington Takes Its Iran Sanctions War Global. US Treasury Secretary Scott Bessent unveiled the Trump administration’s long-mooted “economic D-Day” measures against Tehran, threatening Iran’s main trading partners, without hinting at China, with exclusion from the dollar system.
Iran Turns Its Hormuz Blacklist into a Contagion Risk. Tehran has threatened fines, detention and cargo confiscation against 45 tankers deemed non-compliant for dark transits through the Strait of Hormuz, warning any vessel conducting ship-to-ship transfers with them could also be listed.
Hormuz Traffic Collapses as Iran Widens Its Shipping Threat. Only 2 commodity vessels crossed the Hormuz strait on Monday, a notable plunge compared to the previous 10-day average of 14, following the Iranian authorities’ threats against dark transits and vessels deemed non-compliant.
Saudi Arabia’s Hormuz Bypass Runs into Red Sea Risk. A Houthi attack on the Amzan tanker owned by Saudi Arabia’s national shipping firm Bahri near Riyadh’s only operational loading port of Yanbu exposed the vulnerability of the East-West pipeline, forcing all tankers to move towards the Suez.
IEA Keeps Its Oil Reserve Firepower in Check. The International Energy Agency is not discussing another emergency release after deploying 400 million barrels in March, according to its chief Fatih Birol, claiming to monitor the current situation as 80% of the IEA’s strategic stocks remain intact.
Ukraine’s Drones Keep Russian Diesel Off the Market. According to Russia’s deputy prime minister Alexander Novak, Moscow may extend its diesel export ban through October after a series of Ukrainian drone strikes on southern refineries perpetuated the pressure on domestic fuel balances.
Trump Rebuilds His China Tariff Wall. US President Donald Trump is set to impose an additional 7.5% tariff on Chinese goods over allegations of excess manufacturing capacity, restoring the White House’s second-term duties to 20%, less than a month before the September 24 Trump-Xi Summit.
Britain Eyes an LNG Lifeline as North Sea Gas Fades. The UK government is reportedly considering investment in LNG import capacity amidst declining output, defying calls for a reversal in London’s repressive oil and gas policy that slapped a 78% headline tax under the Energy Profits Levy.
Qatar’s LNG Woes Shift from Gas to Ships. QatarEnergy’s 77 mtpa Ras Laffan liquefaction plant is running short of available gas carriers as the Middle Eastern country’s Hormuz transits have stalled completely, leaving 1.2 million mt LNG afloat in the Gulf and raising the prospect of production cuts.
Iran Finds More Gas, but Not Yet More Supply. Iran has reported the discovery of a giant gas field containing up to 5.7 TCf of recoverable gas, the 2nd significant gas find in the southern province of Fars alongside Pazan, with Tehran aiming for a commissioning date in the second half of 2029.
EPA Relief Threat Deflates US Biofuel Credits. Prices for US ethanol blending credits plunged 16% to $1.75 after the Environmental Protection Agency delayed its compliance deadline and pending refinery exemptions raised expectations that 1.2–1.8 billion credits could return to the market.
Braskem’s Petchem Slump Ends in Restructuring. Latin America’s largest petrochemical producer Braskem (NYSE:BAK) will renegotiate $10.9 billion of its unsecured debt after weak industry margins and a salt-mine disaster drained liquidity, potentially opening the door to new investors.
Pemex Battles Fire at Pajaritos Terminal. Mexico’s state oil firm Pemex said a fire at the Pajaritos storage terminal remains under control but has yet to be fully extinguished, claiming the blaze was sparked by an electrical storm, derailing crude loadings for the 100,000 b/d Isthmus crude stream.
Trump Wins a Procedural Round on Offshore Drilling. An Alaska judge dismissed a lawsuit from environmentalists challenging President Trump’s move to allow offshore drilling; however, it left the question of whether a president can legally reverse a predecessor’s coastal protections unresolved.
China Has the Zinc, the LME Has the Squeeze. Zinc prices hit a four-year high of $3,825 per tonne as LME inventories fell 25% since June, driven by soaring Chinese stocks and record-negative treatment charges confirming concentrate scarcity, with the LME cash premium jumping to $132 per tonne.
Oilprice.com
