Iran Sanctions Send Oil Prices Tumbling Ahead of US Announcement
Oil prices have dropped by over $1 per barrel in Asian trading on August 24 as investors await Washington's announcement of new sanctions against Iran. The decline comes after two consecutive weeks of gains for both Brent and WTI crude futures, which rose by more than 5% last week due to the stalemate between the US and Iran.
The Iranian government has been refusing passage to unauthorized oil tankers through the Strait of Hormuz, leading to a significant reduction in global supplies. Washington is expected to impose what it calls 'the toughest sanctions in history' against Iran, with Treasury Secretary Scott Bessent scheduled to hold a press conference on Monday.
Vivek Dhar from Commonwealth Bank of Australia warns that these measures could lead to increased violence and further risks for global energy markets if they succeed in isolating Iran economically. Meanwhile, Iranian Foreign Minister Abbas Araqchi has rejected the sanctions, stating that Washington's return to economic pressure is a sign of desperation.