Oil prices fell more than $1 a barrel on Aug. 24 as investors took profits after recent gains and waited for details of new US sanctions on Iran. Brent crude fell 1.23% to $93.23 a barrel, while US West Texas Intermediate dropped 1.78% to $85.51. Both benchmarks had gained more than 5% in the previous week, according to Reuters.

Sanctions Put Oil Supply In Focus

US Treasury Secretary Scott Bessent is expected to announce additional sanctions on Iran. He has described the planned measures as among the toughest sanctions against Tehran. President Donald Trump has also warned that countries supporting Iran could face penalties.

The developments come as diplomatic efforts between the US and Iran remain stalled. Iranian President Masoud Pezeshkian has called for a diplomatic solution. Pakistan's army chief visited Tehran on Monday as part of mediation efforts.

Strait Of Hormuz Remains A Key Risk

The Strait of Hormuz remains central to global energy markets. The US Energy Information Administration said oil flows through the waterway averaged 20.9 million barrels per day in the first half of 2025. That represented about one-fifth of global petroleum liquids consumption.

Traffic has since fallen sharply. EIA data showed flows averaged 4.9 million barrels per day in the second quarter of 2026, compared with 20.9 million barrels per day in the first quarter.

Global Markets Watch The Next Move

Asian economies are particularly exposed to disruptions in the strait. China, India, Japan and South Korea accounted for about 74% of crude oil and condensate flows through Hormuz in the first half of 2025.

Morgan Stanley has projected that Brent crude could reach $100 a barrel in the fourth quarter if supply disruptions continue.

The International Energy Agency has also highlighted the impact of the disruption on global oil demand and fuel prices. The developments around Hormuz, sanctions policy and diplomatic negotiations are expected to remain important factors for oil markets.