Oil Prices Steady Amid US Sanctions Uncertainty

Oil prices have steadied following a 2% decline in the previous session, as traders weigh the impact of US sanctions on Iran against the risk of reduced oil flows or further retaliation.

Brent crude rose by 27 cents to $92.44 per barrel early August 25th, while West Texas Intermediate (WTI) gained 37 cents to around $85.38 after both benchmarks fell more than 2% in the previous session.

Despite this muted rebound, traders are cautious about a potential supply risk, as countries affected by conflict account for over 43% of global oil production and more than 10% of worldwide refining capacity is offline.

Fuel inventories are being depleted due to disruptions across major producing regions, leaving the market increasingly sensitive to further disruptions.