Oil Falls Ahead of Further US Sanctions on Iran

2026-08-23 23:37 By Joshua Ferrer 1 min. read

Crude oil slipped to $85 per barrel after a sharp weekly rally, as investors took profits ahead of Washington’s announcement of what Treasury Secretary Scott Bessent called the “single greatest financial offensive ever” against Iran.

The new measures are expected to expand sanctions on Iran’s banking, energy, aviation and cryptocurrency sectors while also targeting countries and entities that continue doing business with Tehran.

The measures could further restrict Iranian oil flows, which have already been severely disrupted by the conflict and US blockade.

Iran has pushed back, with its Persian Gulf Strait Authority warning that vessels violating its transit rules in the Strait of Hormuz could face fines, seizure or confiscation.

Tehran has also threatened countries supporting the US campaign, raising concerns over further disruptions to the key oil route, through which roughly one-fifth of global seaborne oil passed before the war.



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