Oil prices slide over 2% as markets await new US sanctions on Iran

Published Aug 24, 02:18 AM UTC

Oil prices fell over 2% in early Asian trade on Monday as traders took profits from last week's 5% rally, driven by escalating U.S.-Iran tensions and reduced tanker traffic through the Strait of Hormuz. WTI crude traded at $85.18 per barrel and Brent at $92.32. Markets are now focused on U.S. Treasury Secretary Scott Bessent, who is set to announce new economic measures against Tehran at a 2 p.m. press conference. Bessent has described the upcoming campaign as an 'economic D-Day,' targeting countries and entities involved in Iranian petroleum purchases, financial transactions, and seaborne fuel transfers. The U.S. blockade has already reduced Iranian crude offers to Chinese buyers and raised prices. In response, Iran's Supreme National Security Council head Mohsen Rezaei warned that participation in the U.S. campaign would be considered an 'act of war.' Meanwhile, Pakistani Army Chief Asim Munir is expected to travel to Tehran to push for renewed negotiations. The oil market could tighten further if the new sanctions deter buyers or intermediaries.