The Trump administration said on Friday it had imposed sanctions on an independent "teapot" refinery in China for buying billions of dollars' worth of Iranian oil, as Washington and Tehran head into another round of peace talks over the weekend , according to CNBC. The Treasury Department targeted Hengli Petrochemical (Dalian) Refinery, which it said is one of Iran's largest customers of crude oil and petroleum products . The department's Office of Foreign Assets Control said it also imposed sanctions on about 40 shipping companies and vessels that operate as part of Iran's shadow fleet .

Treasury Secretary Scott Bessent said sanctions targeting Iran's oil network are part of the war effort to deprive Tehran of the money to arm its military . The move comes as the sanctions take aim at a main revenue stream for Iran, ahead of high-stakes talks between the U.S. and Iran over ending the war, expected for Saturday . According to MarketWatch, U.S. stock-index futures were mixed on Sunday as oil prices rose, ahead of a key week for Wall Street following record highs for the S&P 500 and the tech-heavy Nasdaq .

Goldman Raises Oil Price Forecasts on Supply Crunch

Goldman Sachs has raised its oil price forecasts for the fourth quarter to $90 a barrel for Brent crude and $83 for U.S. West Texas Intermediate (WTI), on lower output from the Middle East , according to Reuters. GS estimates 14.5 million barrels per day of Middle East crude production losses are driving global oil inventories to draw at a record 11-12 million bpd pace in April .

"The economic risks are larger than our crude base case alone suggests because of the net upside risks to oil prices, unusually high refined product prices, products shortages risks, and the unprecedented scale of the shock," GS analysts led by Daan Struyven said in an April 26 note . GS expects the global oil market to swing from a 1.8 million bpd 2025 surplus to a 9.6 million bpd Q2 2026 deficit .

According to market data, WTI crude traded at $71.50 per barrel on Sunday, up 0.6%, while Brent crude stood at $75.20 per barrel, up 0.5%. Henry Hub natural gas fell 2.4% to $3.25 per MMBtu.

US Strategic Petroleum Reserve Flows to Europe

The Trump administration has authorized the release of millions of barrels of oil from the Strategic Petroleum Reserve (SPR), with Europe emerging as a key buyer. According to Bloomberg, the U.S. has so far released 79.7 million barrels to 12 companies, with nearly 50 million barrels going to UK's Vortexa Ltd , OilPrice.com reported.

According to shipping data and maritime intelligence firm Kpler, supertanker Eagle Versailles is currently en route to Rotterdam, Netherlands, carrying a cargo of approximately 2.1 million barrels of Bryan Mound medium sour crude oil . U.S. sour crude from the SPR is being offered to European buyers at discounts of about $5 per barrel relative to local grades, providing some relief as Brent crude remains elevated near $105 per barrel .

Last month, the International Energy Agency (IEA) announced the coordinated release of over 400 million barrels of oil from global strategic reserves to combat high energy prices amid the Middle East turmoil. The U.S. was to contribute approximately 172 million barrels of this total, with the release taking place over 120 days starting late March 2026 to help lower gasoline costs .

Canada Opens First Battery-Grade Lithium Refinery

In a move to challenge China's dominance in critical minerals processing, Mangrove Lithium's Delta, BC facility is the first commercial electrochemical lithium refinery in North America, with capacity to produce 1,000 tonnes of battery-grade lithium a year , according to OilPrice.com. The venture capital-backed company says that it will be able to produce 1,000 tonnes of refined battery-grade lithium per year, or about enough to support 25,000 electric vehicles .

China still controls roughly half of the global lithium market, and the Canadian government is backing Mangrove as part of a broader critical minerals push under PM Mark Carney . A planned Eastern Canada expansion would scale output to support up to 500,000 EVs annually by refining lithium and processing spodumene sourced from Canadian mines .

"This is a landmark moment not just for Mangrove, but for Canada," Dr. Saad Dara, CEO and Founder of Mangrove Lithium, was recently quoted by Interesting Engineering. "By commissioning the first commercial electrochemical lithium refinery in North America, we are proving that lithium can be refined domestically, sustainably, and competitively."

Natural Gas Markets Face Extended Disruption

The closure of the Strait of Hormuz continues to reshape global energy flows. More than six weeks after the war began, one key part of the global energy supply remains locked in the strait—liquefied natural gas, or LNG. LNG is mainly used for electricity and heating, and about a fifth of the global LNG supply is produced by state-owned QatarEnergy. Even if the strait opens, it's unclear when Qatar's LNG could reach buyers in Asia and Europe , NPR reported.

The conflict in the Middle East, now in its second month, is expected to crimp global natural gas supplies for two years as damage to liquefied natural gas (LNG) facilities in Qatar disrupts supply, the IEA predicts. The war has closed the Strait of Hormuz, effectively cutting off one-fifth of global oil and LNG supplies , according to CBS News. Iranian strikes on Ras Laffan Industrial City, a liquefied natural gas export terminal in Qatar, last month reduced its LNG capacity by 17%, Qatar's energy minister said. It could take up to five years to repair the damage, the energy minister added .

Oilfield services firm Baker Hughes assumes in its financial guidance that the Strait of Hormuz may not reopen for months. A Dallas Fed Energy survey of oil and gas executive found nearly 80% believe the strait will not reopen until August or later , CNBC reported.

The energy disruptions underscore the fragility of global supply chains as geopolitical tensions reshape commodity flows. With sanctions tightening on Iran's oil network, strategic reserves being deployed at historic levels, and new supply chain infrastructure coming online in North America, the energy landscape is undergoing a fundamental reconfiguration that will likely persist well beyond the current crisis.