Brent Crude Hits $101.88 as US Threatens to Ground Iranian Airlines
Brent crude rose 1.53% to $101.88 after Treasury Secretary Bessent warned that Iranian airlines would lose access to the dollar system.
Key points
- Brent crude futures rose 1.53% to $101.88 per barrel following U.S. warnings.
- Treasury Secretary Bessent threatened to exclude Iranian airline partners from the dollar system.
- Iranian President Pezeshkian plans to address the UN General Assembly in New York.
Brent crude futures for November delivery rose 1.53% to $101.88 per barrel on Tuesday. The gain followed a warning from U.S. Treasury Secretary Scott Bessent that all Iranian airlines will be shut down starting Wednesday.
U.S. West Texas Intermediate futures for October advanced 1.5% to $97.22 per barrel. Bessent stated that carriers serving Iran would be excluded from the dollar system if they provide fuel or landing services.
Dollar system threat targets airline operations
Bessent explained the mechanism on CNBC’s Squawk Box program. He noted that countries providing fuel or tickets to Iranian carriers face financial exclusion. This threat aims to ground flights by cutting off essential commercial services.
The move escalates pressure on Tehran ahead of diplomatic talks. Investors reacted immediately to the statement regarding the dollar system. The warning signals a broader economic sanction on aviation infrastructure.
Diplomatic talks may limit price spikes
Iranian President Masoud Pezeshkian is scheduled to address the United Nations. He will present Iran’s positions on international developments and the regional conflict. Talks with other leaders are planned for September 22 through 28.
Lukman Otunuga of FXTM noted that direct talks could lower prices. Confirmation of negotiations might improve expectations for regional oil supply. However, renewed escalation would trigger a significant response from Tehran.
Market focus shifts to diplomatic outcomes
Attention remains focused on potential diplomatic solutions to the conflict. Otunuga warned that escalation would push crude prices higher. The market is currently balancing supply risks against negotiation hopes.
