Oil Prices Today, August 24, 2026: Brent Crude Falls 1.4% to $93 Per Barrel Ahead of US Sanctions on Iran

Mumbai, August 24: Oil prices fell on Monday as investors booked profits after a sharp rally in crude and awaited details of fresh US sanctions against Iran. But oil prices remained elevated. 

Brent crude futures fell 1.4% to $93 a barrel, while US West Texas Intermediate crude declined 1.6% to $85.7 a barrel. The retreat came after crude prices gained more than 5% last week as the breakdown of US-Iran peace efforts heightened fears of a prolonged disruption to oil shipments from the region. 

US sanctions on Iran in focus 

US Treasury Secretary Scott Bessent is expected to provide details of what US has described as some of its toughest measures against Tehran. US President Donald Trump has also warned countries and companies continuing economic ties with Iran that they could face consequences. 

Both contracts fell on profit booking ahead of US sanctions on Iran. Source: Oilprice.com

Traders are therefore reluctant to see the decline as a sign that supply risks have eased. It appears to be profit-taking. 

Also Read: How To Invest In Crude Oil

Strait of Hormuz remains key risk 

The Strait of Hormuz remains at the centre of concerns as the waterway is a critical transit route for energy shipments. 

Traffic through the strait has fallen sharply. 

The market is watching the waterway closely. 

Global supply concerns intensify 

The disruption to Middle Eastern oil flows has already tightened the supply outlook with analysts pointing to significant declines in oil inventories even as exports from the region have fallen towards earlier lows. 

The impact could be significant for major Asian importers. Higher transportation and insurance costs could further increase the delivered cost of crude if geopolitical tensions persist. 

China in focus 

China could face particular pressure from tighter US sanctions on Iran as it remains the largest buyer of Iranian crude with Iranian oil shipments to China having already declined sharply. Chinese refiners have been looking for alternative supplies. 

A sustained reduction in Iranian exports could force Chinese buyers to compete more aggressively for crude. 

What it means for India 

The country relies heavily on imports to meet its oil requirements, therefore, the decline in crude prices offers some relief. However, with Brent at $93 a barrel, oil pressure remains. 

Investors are likely to track crude closely, particularly for its impact on oil sensitives. 

Oil price outlook 

For now, Monday’s decline appears to reflect profit-taking. The next major move in crude prices is likely to depend on the details of the US sanctions and Iran’s response. 

Geopolitical tensions are likely to remain a key driver of the oil market in the near term. 

Source

• oilprice.com