Oil prices dip ahead of Iran sanctions announcement

Oil prices eased on renewed Middle East risk amid expected US sanctions on Iran and ongoing tensions, with Brent around $93 and WTI in the mid-$80s as traders weighed supply disruption fears. Iran signaled it could further restrict Strait of Hormuz, intensifying concerns over critical oil routes and US efforts to pressure Tehran. Ship traffic through Hormuz remains volatile, with reroutings around Bab al-Mandeb and continued impacts from Yemen’s Houthis, while some Iraqi tankers are permitted to pass through Iran. Policy developments, including a forthcoming US plan to economically isolate Iran and threats of sanctions on Tehran’s trading partners, contributed to the mood despite earlier price spikes. Markets also noted Italy’s diesel relief measures and broader energy-policy shifts as the war disrupts flows from the Arabian Gulf. By late August, price movements appeared more in line with EIA forecasts and market predictions suggesting a lower probability of reaching new all-time highs, though volatility persists amid geopolitical risk.