Oil prices stabilize following US sanctions on Iran

Oil prices showed volatility on August 24–25, 2026, following a rally caused by Middle East supply concerns. On Monday, Brent and WTI crude saw declines of over 1.5%, with Brent dropping from its Friday close of $94.39 to approximately $91.30, as investors engaged in profit-taking while anticipating new U.S. sanctions against Tehran.

On Monday, U.S. Treasury Secretary Scott Bessent announced an expansion of economic sanctions aimed at restricting Iran's financial lifelines. The market remains sensitive to these geopolitical developments, as traders assess the potential impact on global oil exports. By Tuesday, prices began to stabilize, with Brent trading at $90.52 and WTI at $85.11, as the market digested the long-term implications of the tightened economic pressure.

Historically, the rise in prices during the prior two weeks—exceeding 6% for Brent—was driven by fears of supply chain disruptions in the region. Investors are currently monitoring both the enforcement of these new measures and broader economic indicators, including upcoming Nvidia financial results and pending commentary from Federal Reserve Chair Kevin Warsh regarding future interest rate paths.