SINGAPORE: Oil prices rose on Wednesday, pushed up by concerns that the US may reimpose sanctions on major exporter Iran, although soaring US supplies capped gains.
Brent crude oil futures were at $73.42 per barrel at 0658 GMT, up 29 cents, or 0.4 percent from their last close.
US West Texas Intermediate (WTI) crude futures were up 45 cents, or 0.7 percent, at $67.70 per barrel.
Sentiment has also been bullish in physical markets, where Dubai and Malaysian crudes in April traded at their highest prices since November, 2014 at $68.27 and $75.70 per barrel respectively.
Iran, a member of the Organization of the Petroleum Exporting Countries (OPEC), re-emerged as a major oil exporter in January, 2016 when international sanctions against Tehran were lifted in return for curbs on Iran’s nuclear program.
Iran’s oil exports hit 2.6 million barrels per day (bpd) in April, the Oil Ministry’s news agency SHANA reported on Tuesday, a record since the lifting of sanctions, with China and India buying more than half of Iran’s oil.
The US, however, has expressed doubts over Iran’s sincerity in implementing those curbs and President Donald Trump has threatened to re-impose sanctions.
Trump will decide by May 12 whether to restore US sanctions on Tehran, which would likely result in a reduction in its oil exports.
“If Trump abandons the deal, he risks a spike in global oil prices ... The re-introduction of US sanctions would hurt Iran’s ability to transact in dollars,” said Ole Hansen, head of commodity strategy at Saxo Bank.
“A reintroduction of sanctions without seeing other OPEC-members increase production could remove an estimated 300,000-500,000 bpd of Iranian barrels,” he added.
Some analysts, however, said there was a risk that prices could slump as too many oil traders were betting on renewed sanctions.
“If the geopolitical tension subsides or results in a smaller supply disruption than currently priced in, we are likely to see a sharp pull-back in investor positioning and an even sharper correction in oil prices than the $5 or so that might be warranted even as macro uncertainties persist,” US bank Citi said in a note to investors.
Beyond the threat of new Iran sanctions, other factors prevented crude prices from rising further, including a rising dollar since mid-April as well as soaring US supplies, traders said.
US crude inventories rose by 3.4 million barrels to 432.575 million in the week to March 27, according to a report by the American Petroleum Institute on Tuesday.
Rising inventories are in part a result of soaring US production, which has jumped by a quarter in the last two years to 10.6 million bpd, making the United States the world’s number two crude oil producer behind only Russia, with 11 million bpd.
More US oil will likely flow. US drillers added five oil rigs looking for new production in the week to April 27, according to energy services firm Baker Hughes, bringing the total count to a March, 2015 high of 825.
Oil rises on Iran sanction worries, but surging US supplies limit gains
Oil rises on Iran sanction worries, but surging US supplies limit gains
- Sentiment has been bullish in physical markets, where Dubai and Malaysian crudes in April traded at their highest prices since November
- Rising inventories are in part a result of soaring US production, which has jumped by a quarter in the last two years to 10.6 million bpd
Oman’s Islamic banking assets rise to $24bn on credit growth
JEDDAH: Oman’s Islamic banking assets climbed to about 9.2 billion Omani rials ($23.9 billion) by the end of October, underscoring steady expansion in the sultanate’s financial sector as credit growth remains robust.
Assets held by Islamic banks and Islamic windows accounted for 19.5 percent of Oman’s total banking system, up 10.8 percent from a year earlier, the Oman News Agency reported.
Oman’s banking sector performance reflects steady progress toward Vision 2040, which prioritizes economic diversification, private sector growth, and financial resilience.
“As for the total financing provided by institutions engaged in this activity, it also rose by 10.4 percent, reaching around 7.4 billion Omani rials,” the ONA reported, adding that deposits with Islamic banks and Islamic windows grew 11.9 percent to roughly 7.3 billion rials by the end of October.
Rising credit flows, particularly to non-financial corporates and households, are fueling the development of small and medium-sized enterprises and domestic investment in Oman, supporting efforts to reduce reliance on hydrocarbons and build a more diversified economy.
“Total deposits held with ODCs registered a Y-o-Y significant growth of 7 percent to reach 33.3 billion rials at the end of August 2025. Total private sector deposits increased by 7.5 percent to OMR 22.4 billion,” the Central Bank of Oman said in a statement issued in October.
The broader banking sector also saw solid credit growth in 2025. By the end of August, total credit across commercial banks increased by 8.6 percent year on year to 34.1 billion rials, driven mainly by lending to non-financial corporates and households, which accounted for 46.7 percent and 44.7 percent of total credit, respectively.
Private sector lending alone rose by 6.5 percent, supporting SME activity and domestic investment.
Meanwhile, aggregate deposits at conventional banks climbed 5.5 percent to 26.1 billion rials at the end of August, with private sector deposits accounting for 67 percent, or 17.5 billion rials, of the total.
Islamic banking entities mirrored this momentum, with total financing reaching 7.3 billion rials and deposits standing at 7.2 billion rials by the end of August, underscoring steady expansion throughout 2025.
Islamic banking in Oman was introduced after the Central Bank of Oman issued preliminary licensing guidelines in May 2011, allowing full-fledged Islamic banks and Islamic windows to operate alongside conventional institutions.
The framework was formalized in December 2012 through a Royal Decree amending the Banking Law, mandating Shariah supervisory boards and authorizing the central bank to establish a High Shariah Supervisory Authority.
