Oil Prices Plummet as US Sanctions Iran Amid Trade Tensions

Oil prices dropped by nearly 3% on August 25 after U.S. Treasury Secretary Scott Bessent announced new sanctions against Iran, warning countries that continue to do business with the Islamic Republic would face retaliation.

The Brent crude price fell $2.35 to $88.19 per barrel, while U.S. benchmark crude oil shed $2.65, about 3%, to $82.36 per barrel.

Last month, Brent zigzagged between $72 and $102 as hopes rose and fell that the United States and Iran could reach a deal allowing oil tankers to freely exit the Persian Gulf again.