Brent falls below $90 amid US statements on sanctions against Iran
Oil prices declined for a second consecutive day on August 25: the international Brent benchmark fell below $90 per barrel, losing more than 3%. Market participants assessed the risk of renewed military strikes on Iran as lower after the United States threatened broader economic sanctions, Channel NewsAsia reports.
US sanctions statements
US Treasury Secretary Scott Bessent said that the White House is declaring “economic D-Day” against Iran and its trading partners. At the same time, Washington did not name a timeline for imposing new sanctions and did not specify which other countries could be punished.
According to analysts, the announced measures proved milder than expected. Reports of renewed mediation contacts also affected markets: Pakistani mediators said that talks with Iran’s president had been positive.
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Market reaction
Pakistan’s Interior Minister Mohsin Naqvi said on X that the talks had been very positive and productive. According to him, their momentum could contribute to further progress and lasting peace in the region.
Before that, oil quotes had been rising for several weeks due to a deadlock in negotiations on reopening the Strait of Hormuz. US stock indexes ended trading higher: the S&P 500 gained 0.3%. Most major European markets also closed in positive territory, while the Paris market declined slightly at the end of trading.
Investors are awaiting Nvidia’s earnings report and the annual meeting of central bank chiefs, economists and financial officials in Jackson Hole, which is due to begin on Thursday.
