24 Aug 2026 (Navroze Bureau) : Oil prices fell more than 2% in early Asian trading on August 24, as traders booked profits after last week’s rally and waited for details of a new U.S. sanctions package targeting Iran.
Brent, WTI Fall More Than 2%
Brent crude futures were trading around $92.32 a barrel, down 2.19%, while West Texas Intermediate (WTI) was at about $85.18, down 2.16%.
The decline came after both benchmarks gained more than 5% during the previous week amid escalating tensions between Washington and Tehran.
Profit-Taking Drives the Pullback
The latest decline does not necessarily signal an improvement in the underlying geopolitical situation.
Traders appear to be locking in profits following the sharp weekly rally, while the market waits to see whether new U.S. measures against Iran will significantly affect crude supplies.
Bessent’s ‘Economic D-Day’ in Focus
The next major catalyst is U.S. Treasury Secretary Scott Bessent, who is expected to announce new economic measures against Tehran.
Bessent described the forthcoming campaign as an “economic D-Day”, raising expectations that Washington could introduce particularly aggressive measures against Iran’s oil trade and financial networks.
Iranian Oil Exports Under Pressure
The U.S. blockade and mounting sanctions pressure are already affecting Iran’s crude exports.
Reports indicate that offers of Iranian oil to Chinese buyers have declined, while prices for available Iranian barrels have increased. If new sanctions discourage more buyers, shippers and intermediaries, global oil supply could tighten further.
Strait of Hormuz Remains Critical
The Strait of Hormuz remains at the centre of the oil market’s concerns because of its importance to global energy shipments.
Tanker traffic through the waterway has slowed sharply. The absence of confirmed attacks in the previous 48 hours offered some temporary relief, although reduced shipping itself remains a sign of continued disruption.
Iran Warns Countries Against Supporting Sanctions
Iranian security chief Mohsen Rezaei has warned that countries participating in the U.S. economic campaign against Tehran could be considered to be committing an “act of war.”
Such threats are adding another layer of geopolitical risk for energy markets.
Diplomatic Efforts Continue
At the same time, Iranian President Masoud Pezeshkian has continued to support diplomacy with Washington, describing the memorandum reached in June as a potential route out of the current “neither war nor peace” situation.
Pakistan is also attempting to support renewed negotiations between Iran and the United States.
What Oil Traders Are Watching
The immediate focus is on the details and impact of Bessent’s sanctions announcement.
Markets will assess whether the measures:
- Reduce Iranian oil exports further.
- Discourage countries from buying Iranian crude.
- Disrupt shipping through the Strait of Hormuz.
- Trigger retaliation from Tehran.
- Cause another sharp move in global crude prices.
Oil Market Outlook
The 2% decline provides some relief to consumers and oil-importing economies, but the broader outlook remains highly uncertain.
If sanctions significantly restrict Iranian exports or trigger further disruption around Hormuz, crude prices could quickly rebound. Conversely, stronger diplomatic signals or improved tanker traffic could ease supply concerns.