Oil Prices Fall as US Prepares to Unveil New Iran Sanctions

Published On 24 Aug, 2026
oil-prices-fall-as-us-prepares-to-unveil-new-iran-sanctions

Brent crude futures fell $1.23, or 1.3%, to $93.16 by 0329 GMT, while U.S. West Texas Intermediate crude was at $85.7 a barrel, down $1.36, or 1.6%.

Both ​contracts posted their second weekly gains last week, up more than 5%, as peace talks between ​the U.S. and Iran hit a stalemate, capping oil shipments through the Strait of ⁠Hormuz where a fifth of the world’s supply used to transit.

U.S. Treasury Secretary Scott Bessent, set to hold a ​press conference at 2 p.m. EDT (1800 GMT) on Monday, has threatened to impose “the toughest sanctions in history” on ​Iran. President Donald Trump has also threatened to impose sanctions on Iran’s trading partners.

“It is unclear whether U.S. policy to economically isolate Iran will prove effective,” Vivek Dhar, a commodities analyst at Commonwealth Bank of Australia, wrote in a note.

“But if the ​U.S. measures do work as intended, Iran’s ability to respond via increased violence becomes a growing risk for ​energy markets to consider.”

Iran has condemned U.S. plans to announce new sanctions even as President Masoud Pezeshkian called for a diplomatic ‌solution.

“The more ⁠pragmatic members of the Iranian leadership would prefer to de-escalate but the hardliners would probably prefer to fight to the bitter end,” IG markets analyst Tony Sycamore said.

“I think by the end of this week we will have a good idea which side of the Iranian leadership has the upper hand.”