Oil prices declined for several consecutive days, with Brent crude falling below US$90 a barrel. On Monday, August 24, both Brent and US West Texas Intermediate dropped more than 2 percent, with US crude hitting a one-week low following profit-taking after a two-week rally.
The decline comes as investors assess a US pivot toward economic sanctions rather than military strikes to pressure Iran. Treasury Secretary Scott Bessent declared an economic D-Day against Tehran, describing a plan for the economic asphyxiation of the country, though no specific timeline or details regarding penalized countries were provided.
Markets reacted positively to the softer-than-expected sanctions and reports of positive talks between Pakistan and Iran, leading to a rise in US stocks. While oil continued to fall through Wednesday, investors largely shrugged off the latest developments in the U.S.-Iran war as the risk of renewed military strikes appeared reduced.