US Imposes New Sanctions on Iran, Oil Prices Drop 2.33%

On Friday, the United States imposed new sanctions on Iran, targeting companies, vessels, and individuals involved in supplying Tehran’s military programs. The US Treasury announced the crackdown from Washington, hitting eight entities, one person, and one ship involved in moving sensitive tools used to build missiles, drones, and other weapons. The administration stated that the decision aims to limit Iran’s access to dual-use technology, which can be used for both civilian and military purposes. The announcement named Unico Shipping Co Ltd and Athena Shipping Co Ltd, two companies based in China Hong Kong, as participants in transporting machinery and components to Iran’s defense sector. These additions to the US sanctions list follow mounting concerns that Tehran is stepping up development of weapons used across conflicts in the Middle East.

Scott Bessent, the US Treasury Secretary, stated, “The United States remains resolved to disrupt any effort by Iran to procure the sensitive, dual-use technology, components, and machinery that underpin the regime’s ballistic missile, unmanned aerial vehicle, and asymmetric weapons programs. Treasury will continue to degrade Iran’s ability to produce and proliferate these deadly weapons, which threaten regional stability and global security.”

On the same day, the US Treasury Department rolled out a separate batch of counterterrorism sanctions, targeting a supply network supporting the Houthis, the Iran-backed militant group operating in Yemen. This move targets four individuals, 12 companies, and two vessels for moving oil and illicit goods to generate funding for the rebels. US officials said the goal was to cut off revenue pipelines feeding Iran’s proxy warfare in the region.

The news came just 24 hours after Israel bombed Iranian nuclear sites, an attack that prompted an immediate response from Iran, which launched missiles and drones toward Israeli territory. Both sides have refused to step back from the conflict, now a full week deep. Despite no signs of de-escalation, the White House said Trump will wait up to two weeks to decide whether to involve US forces in the Israel-Iran standoff. The market reacted swiftly to the diplomatic tone from the White House. Oil prices tumbled as traders reacted to the news. Brent crude ended the day down $1.84 or 2.33%, closing at $77.01 per barrel. West Texas Intermediate (WTI) for July — which didn’t trade Thursday because of a holiday — dropped 21 cents, settling at $74.93. The more active August contract ended at $73.84. Despite the dip, Brent posted a 3.6% weekly gain, and US front-month futures were up 2.7% for the same period.

Traders are closely monitoring the Strait of Hormuz, a narrow but critical route for Middle East oil exports. Iran has repeatedly threatened to close it off during moments of crisis. So far, oil flows remain intact, but tension is rising. Analysts warn that if Iran blocks the strait or if Israel targets Iran’s export infrastructure, crude could spike hard. That scenario would add more stress to already shaky global markets.

Meanwhile, in the US, there’s pressure on the supply side too. Energy services firm reported that American oil and gas firms have now cut drilling rigs for eight straight weeks, the longest slide since September 2023. In the week ending June 20, the rig count fell by one, down to 554, the lowest figure since November 2021. The number of rigs is often used as a forward-looking indicator of future oil production.

Separately, the European Union has quietly backed away from its earlier proposal to drop the Russian oil price cap to $45. That’s another reminder that even as the US under Trump clamps down hard on Iran and its allies, European governments are shifting in a different direction when it comes to energy control strategies.