By Nicole Jao
In New York on August 24, oil prices dropped by more than $2 per barrel on Monday as investors took profits after recent gains and awaited details of expected new U.S. sanctions on Iran, which could further disrupt supplies from the Middle East.
Brent crude futures fell $1.71 (1.81%) to $92.69 per barrel at 12:48 p.m. ET (1648 GMT), and U.S. West Texas Intermediate crude slipped $1.72 (1.98%) to $85.34 per barrel.
Both contracts posted a second consecutive weekly gain of more than 5% as peace negotiations between the United States and Iran stalled, limiting oil shipments through the Strait of Hormuz—a route that historically carried about a fifth of global supplies.
U.S. Treasury Secretary Scott Bessent is set to hold a press conference at 1 p.m. EDT (1700 GMT) on Monday, where he is expected to outline measures that would broaden secondary sanctions on entities and countries maintaining economic ties with Iran. President Donald Trump has also threatened to impose sanctions on Iran’s trading partners.
‘If the pledged embargo is launched, regional oil supply will fall,’ said PVM analyst Tamas Varga, adding that the United States is likely to tighten its naval blockade on Iranian oil exports and that Iran could respond with fresh strikes against oil installations in the Middle East.
Iran has condemned the United States’ plan to announce new sanctions, and President Masoud Pezeshkian called for a diplomatic solution. Pakistan’s army chief visited Tehran on Monday for mediation talks ahead of the U.S. announcement.
Shipping data showed that fewer than 20 commodity vessels transited the Strait of Hormuz over the weekend, as Iranian and U.S. blockades restrict traffic through this critical energy chokepoint.
‘$93 per barrel Brent, rather than $120‑150, shows that enough oil is flowing through the Strait of Hormuz and the Persian Gulf,’ SEB analyst Bjarne Schieldrop told Reuters, noting that a turning point could arise if Iran were to actually close Hormuz with rockets and drones.
