Oil Prices Rebound on Escorted Hormuz Flows, But Sanctions Loom
Oil prices took a hit on August 24, 2026, as markets awaited details of Washington's toughest-ever Iran sanctions campaign. West Texas Intermediate (WTI) fell 1.62% to $85.65 per barrel and Brent dropped 1.38% to $93.09. Analysts believe new sanctions could tighten global supply further, supporting prices despite the latest pullback.
The US military has helped tankers move over 660 million barrels of oil through the Strait of Hormuz since early May, reducing the risk of a complete supply cutoff. Commonwealth Bank of Australia is targeting Brent at $70-$100 per barrel for the second half of 2026 and estimates that restoring 50%-60% of pre-war Hormuz flows could revive oversupply expectations.
US distillate inventories stood at 105.6 million barrels, 13% below the five-year average, while crude inventories were in line with the average. New York Harbor ultra-low sulfur diesel averaged $3.401 per gallon in June 2026, down from $3.969 in May as a deal appeared closer.