Oil prices drop as U.S. sanctions on Iran are expected

On August 24, 2026, oil prices dropped significantly as investors anticipated new U.S. sanctions on Iran. Brent crude futures fell by $1.55 to $92.84 per barrel, while U.S. West Texas Intermediate crude decreased by $2.04 to $85.02. The decline followed a two-week rally due to stalled U.S.-Iran peace negotiations, which had constrained oil shipments through the Strait of Hormuz. The U.S. Treasury Secretary is expected to announce tough sanctions that could further disrupt oil supplies from the region.