Oil Prices Drop Ahead of Expected U.S. Iran Sanctions

Donald Trump is expected to announce new U.S. economic sanctions against Iran on Monday, following a persistent diplomatic impasse over the Strait of Hormuz. The anticipated measures are likely to target buyers of Iranian oil, with the government of China identified as a primary target.

Oil prices declined in early Asian trade on August 24 as markets adjusted positions in response to the news. Front-month WTI crude oil futures dropped 1.0% to $86.16 per barrel, while front-month Brent crude oil futures also fell 1.0% to $93.45 per barrel.