Oil Prices Slide on Geopolitical Risk, Sanctions Against Iran

On August 24, 2026, crude oil prices pulled back as traders locked in profits after two weeks of gains. West Texas Intermediate fell roughly 2%, 2.5% toward the mid-$80s per barrel, while Brent slipped a similar amount to the low $90s.

The retreat followed consecutive weeks of strong gains driven by Middle East geopolitical risk. Attention centered on U.S. Treasury Secretary Scott Bessent’s push for expanded sanctions aimed at economically isolating Tehran, including measures targeting entities that purchase and transport Iranian crude.

Despite broader supply worries remaining, commercial traffic through the Strait of Hormuz stays constrained, even as alternative routes, U.S. output, and regional exports have so far limited severe shortages.