Iran Sanctions Pressure Intensifies, Oil Prices Slide Back

The Trump administration's renewed pressure on Iran has sent oil prices lower, despite hopes for a negotiated settlement. The US Treasury Secretary Scott Bessent announced 'Economic D-Day' sanctions on Iran, threatening to sanction all commercial partners of Tehran unless they wind down trade.

Pakistan's mediation efforts have temporarily offset the bullish momentum, sending ICE Brent prices back to $89 per barrel. Iranian crude exports have been minimal since August, averaging only 0.3 million barrels per day compared to a 2025 average of 1.7 million b/d.

China has been evacuating volumes during the three-week period of free navigation in June-July and has slightly above Tehran's pace of loading at around 800,000 barrels per day. However, due to drawing stocks, Chinese imports of Iranian barrels are set to decline further next month.