Jakarta, ThedailyID — Oil prices fell by more than US$1 per barrel in early trading on Monday (24/08), as investors took profits ahead of an expected U.S. announcement on new sanctions against Iran.
Brent crude futures fell US$1.22, or 1.29%, to US$93.17 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude dropped US$1.20, or 1.38%, to US$85.86 per barrel, Reuters reported.
Both benchmarks had gained for two consecutive weeks. Brent and WTI each rose more than 5% last week amid growing tensions surrounding Iran.
Oil prices had climbed as peace talks between the United States and Iran remained stalled. The situation has also disrupted oil shipments through the Strait of Hormuz, a strategic route that previously carried around one-fifth of global oil supplies.
Markets are now closely watching Washington’s next move. U.S. Treasury Secretary Scott Bessent is scheduled to hold a press conference on Monday and has previously warned of imposing the toughest sanctions in history on Iran.
U.S. President Donald Trump has also threatened sanctions against countries that continue trading with Iran.
Commonwealth Bank of Australia commodities analyst Vivek Dhar said the effectiveness of U.S. efforts to isolate Iran’s economy remained uncertain.
“If U.S. measures succeed as intended, Iran’s ability to respond through increased violence becomes a growing risk for energy markets,” Dhar wrote in a note, as cited by Reuters, (24/08).
Iran has criticized Washington’s planned sanctions. However, President Masoud Pezeshkian has continued to call for a diplomatic solution to the conflict.
Meanwhile, IG Markets analyst Tony Sycamore pointed to divisions among Iran’s leadership over how to respond to U.S. pressure.
“I think by the end of this weekend we’ll have a good idea of which side within Iran’s leadership is gaining the upper hand,” Sycamore said, as cited by Reuters, (24/08).
