Oil Prices Fall Ahead of New U.S. Measures Against Iran

· Oil prices decline: Brent crude fell 1.8% to about $93/barrel, while WTI dropped 2.3% to around $85/barrel.

· War impact: Despite the decline, Brent remains nearly 30% higher than before the six-month Iran war began.

· New U.S. action: Treasury Secretary Scott Bessent is set to announce new measures to further isolate Iran economically, described by President Trump as an “economic D-Day.”

· China targeted: Bessent criticized countries and entities purchasing and transporting Iranian petroleum, apparently putting China, Iran’s main crude buyer, in focus.

· Iran warns neighbors: Tehran has threatened to strike the interests of neighboring states that participate in U.S. efforts against Iran.

· Hormuz traffic remains severely disrupted: Only 30 ships crossed the Strait of Hormuz over the weekend, compared with a pre-war daily average of about 130 ships.

· Red Sea disruption continues: 83 ships transited the Bab al-Mandab Strait over the weekend. A tanker was also struck near Yanbu, Saudi Arabia, without reported injuries.

· Maritime attacks: The International Maritime Organization says 68 ships have been attacked in the Middle East since the war began.

· U.S. bond yields ease: The 30-year Treasury yield fell to 5.25%, while the 10-year yield declined to 4.71%, though both remain above pre-war levels.

· Stock markets weaken: S&P 500 futures indicated a modest decline, while Asian markets fell amid concerns over heavy AI-related technology spending. South Korea's KOSPI dropped more than 3%.

· Fuel prices rise: U.S. gasoline averaged $4.10/gallon, up 38% since the war began; diesel reached $5.61/gallon, up 49%.

· Overall impact: Continued disruptions around the Strait of Hormuz and Red Sea, together with possible new U.S. measures against Iran and its oil buyers, are keeping energy markets and global financial markets under pressure.

[ABS News Service/24.08.2026]

Oil prices retreated on Monday (24.08.2026) ahead of an expected announcement of new measures by the United States aimed at further isolating Iran economically.

Treasury Secretary Scott Bessent said he will detail what President Trump has called an “economic D-Day” for Iran on Monday afternoon in Washington. In an opinion essay in the Financial Times, Mr. Bessent said the six-month war with Iran was “entering the endgame.”

Without specifying what measures might be taken, Mr. Bessent took aim at Iran’s “enablers purchase and transport its petroleum,” seemingly pointing the finger at China, which has been the main buyer of Iranian crude in recent years. Iran has warned it would strike the interests of neighboring states if they joined the U.S. efforts.

Oil prices slide.

· The price of Brent crude, the global benchmark for oil, fell 1.8 percent to about $93 a barrel. The cost of crude has risen nearly 30 percent since the start of the war.

· West Texas Intermediate crude, the U.S. benchmark, slipped 2.3 percent to around $85 a barrel.

Shipping disruption in Middle East grinds on.

· Investors and analysts are focused on shipping in the Strait of Hormuz, the narrow waterway between Iran and Oman that is a vital trading route for oil and natural gas. Over the past month, the Iranian-backed Houthi militia in Yemen have restricted traffic in the Bab al-Mandab Strait at the southern end of the Red Sea, which Saudi Arabia has used as an alternative to the Strait of Hormuz.

· Over the weekend, 30 ships navigated the Strait of Hormuz and 83 transited the Bab al-Mandab Strait, according to Kpler, the maritime data firm. The number of passages through both straits were near recent five-day averages. Before the war, an average of about 130 ships transited the Strait of Hormuz daily.

· A tanker was struck in the Red Sea, the United Kingdom Maritime Trade Operations agency said on Monday. The vessel was west of Yanbu, Saudi Arabia, and no one was reported injured, the agency said. Since the start of the war, 68 ships have been attacked in the Middle East, according to the International Maritime Organization.

Bonds yields ease.

· Government bond yields declined in early trading on Monday. The yield on the 30-year U.S. Treasury, which has been the focus of investor angst about inflation, deficits and A.I.-related borrowing, fell to 5.25 percent. Before the war, the 30-year yield traded below 4.7 percent.

· The yield on the 10-year Treasury note, a vital benchmark for mortgages, business loans and other types of debt, also fell, to 4.71 percent.

· After U.S. government bond yields hit multiyear highs last week, Mr. Bessent calmed the market by doubling the amount of debt the Treasury Department is permitted to buy back from investors, to $4 billion per weekly operation from $2 billion. But the effect didn’t last long: Yields are now largely back to where they were before the intervention.

· Futures on the S&P 500 pointed to a modest decline when stocks resume trading in the United States on Monday. The index fell last week, snapping a three-week winning streak.

· In Europe, the Stoxx 600, a broad-index that tracks the region’s largest companies, moved between small losses and gains.

· Stocks in Asia fell on concerns about overspending by technology companies to build out artificial intelligence systems. South Korea’s benchmark KOSPI fell more than 3 percent, while shares in Hong Kong and mainland China also declined.

Gasoline prices edge higher.

· Gas prices rose slightly on Monday to a national average of $4.10 a gallon, according to the AAA motor club. The increase has raised the cost for drivers by 38 percent since the war began.

· Gas prices don’t move in lock step with crude, usually trailing increases or drops by a few days.

· The average price of diesel also ticked higher to $5.61 on Monday, up 49 percent since the start of the war.