Oil Extends Decline Despite Tougher US Sanctions on Iran; WTI Near $85
Forecast Trend Report by Period
Oil extended its decline despite tougher US economic sanctions on Iran.
West Texas Intermediate traded near $85 a barrel on Aug. 24 after falling more than 2% in the previous session, Bloomberg reported. Brent crude ended the prior session around $92 a barrel.
US Treasury Secretary Scott Bessent said countries doing business with Iran must cut economic ties within a set period or face unilateral US sanctions. He described the latest measures as an "economic D-Day" for Iran.
The Treasury Department's Office of Foreign Assets Control imposed sanctions on about 60 entities and individuals, including Iran's oil-revenue network and a shadow fleet that transports crude and petroleum products. In response, Iranian Economy Minister Seyed Ali Madanizadeh told state television that the country is "fully prepared" for what he called a new US economic offensive.
Oil prices have risen more than 50% this year, driven by six months of war that has continued to disrupt shipments of crude and refined products across the Middle East. It remains unclear whether the US sanctions will ease those pressures while Iran is restricting energy flows through the Strait of Hormuz. The possibility of escalating tensions between China, the biggest buyer of Iranian crude, and the US is another variable.
Risks to energy shipments in the Middle East also remain high. Yemen's Iran-backed Houthi militants said they fired a ballistic missile at a Saudi very large crude carrier sailing in the Red Sea. The Houthis have previously attacked vessels passing through the Bab el-Mandeb Strait, a key oil shipping route at the southern end of the Red Sea.
