Oil prices drop as US set to unveil new Iran sanctions

Oil prices slipped more than $1 a barrel on Monday, August 24, 2026, as investors took profits ahead of ‌an expected announcement from the United States government about imposing more sanctions on Iran that may further disrupt supplies from the Middle East.

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.

United States President Donald Trump also threatened to impose sanctions on Iran’s trading partners.

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

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IG markets analyst Tony Sycamore said: “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.

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

Offers of Iranian crude to ​Chinese buyers have declined, and ​prices have jumped as the ⁠U.S. blockade has cut Tehran’s shipments, trade sources told Reuters.

However, Iran has granted permission for a number of Iraqi oil tankers to pass through the Strait following repeated ​requests from Baghdad.

Some analysts are ​expecting the recovery ⁠in supplies from the Middle East to take even longer than expected as the U.S.-Iran conflict persists.