Oil climbs as Trump warns of sanctions on Iran's trading partners

Crude oil futures extended their weekly gains on Friday after U.S. President Donald Trump threatened economic sanctions against Iran's trading partners, stoking concerns over supply in the weeks ahead.

International benchmark Brent crude rose 8 cents to $93.86 a barrel, while U.S. West Texas Intermediate gained 16 cents to $86.99. Both benchmarks have climbed more than 5% this week, touching their highest levels since late July in the previous session.

Iran responded by vowing a "devastating" reaction to any new U.S. threats, after Washington pledged to impose the toughest financial penalties in history aimed at toppling the Iranian leadership. The earlier peace deal between the U.S. and Iran expired this week with no effort by either side to restart talks.

Analysts noted that the immediate impact on supply may be limited, as Iranian exports are already heavily constrained by a U.S. naval blockade. However, an increase in shipping incidents or retaliation against economic sanctions could worsen the situation, especially with traffic through the Strait of Hormuz remaining well below normal levels.

Data from ship-tracker Kpler showed only seven commodity ships sailed through the Strait of Hormuz on Thursday, half the previous day's tally. Before U.S.-Israeli attacks on Iran began in late February, the waterway handled about a fifth of global oil and liquefied natural gas supplies. As the conflict nears the six-month mark, disruptions to energy flows through the strait persist.

Oil prices have also been supported by continued supply curtailments from major producers including Saudi Arabia, Iraq, the United Arab Emirates and Kuwait. Meanwhile, offers of Iranian crude to Chinese buyers have declined and prices have jumped this week as the blockade cuts shipments, with the threat of more sanctions looming.

In a separate development, Ukraine's military struck a Russian oil refinery in the city of Perm overnight, more than 1,600 km from the Ukrainian border, according to President Volodymyr Zelenskiy.