Crude oil prices fell Monday, Aug. 24, as traders took profits ahead of new U.S. sanctions on Iran, but disruptions in the Strait of Hormuz kept the risk of another supply-driven price surge
Crude oil prices fell Monday, Aug. 24, as traders took profits ahead of new U.S. sanctions on Iran, but disruptions in the Strait of Hormuz kept the risk of another supply-driven price surge firmly in focus. Brent crude futures dropped 1.3% to $93.16 a barrel by 3:29 a.m. GMT, while U.S. West Texas Intermediate crude fell 1.6% to $85.70. Both benchmarks had gained more than 5% last week.
The pullback comes before Washington details a tougher economic campaign against Iran. Treasury Secretary Scott Bessent is expected to outline the measures Monday afternoon, while President Donald Trump has also threatened penalties against countries that continue supporting Iran economically.
Brent Crude Tests Important Support After Recent RallyThe four-hour Brent crude chart shows momentum cooling after prices climbed from roughly $79 in early August toward the 94-95 region last week.
Brent Crude Oil Price 4-Hour Chart With 50-Period EMA and RSI. Source: TradingView
On the supplied TradingView chart, Brent has fallen back toward its 50-period exponential moving average near $90.73. That makes the 90-91 area an important short-term support zone. RSI has dropped to about 43.8, below the neutral 50 level, showing that buying momentum has weakened without yet reaching oversold territory.
Holding above the moving average would leave room for another attempt at $92.50, followed by resistance around 94-95. A sustained break below $90, however, would weaken the recent recovery and could expose the 87-88 region.
Strait of Hormuz Keeps Oil Supply Risk ElevatedThe bigger driver remains the Middle East.
Fewer than 20 commodity vessels crossed the Strait of Hormuz over the weekend, according to shipping data reported by Reuters. UK Maritime Trade Operations said AIS-detected traffic remained about 90% below pre-conflict levels, highlighting how severely the key energy route is still disrupted.
That helps explain why crude remains elevated despite Monday's decline. Iran has threatened further restrictions on Gulf oil exports if U.S. economic pressure intensifies, while the latest sanctions could also affect Iranian buyers and trading partners.
Rising U.S. Crude Inventories Limit the UpsideU.S. supply data offer a counterweight to the geopolitical risk.
Energy Information Administration data showed commercial crude inventories increased 4.4 million barrels to 428.8 million barrels in the week ended Aug. 14. The latest increase followed an even larger 17.4 million-barrel build the previous week.
U.S. Crude Oil Inventories Weekly Change Chart. Source: Investing.com
OPEC+ is also preparing to raise production targets by 188,000 barrels per day in September, adding another potential source of supply. The group said it will review market conditions again on Sept. 6.
For crude oil prices, that leaves a clear tug-of-war. High U.S. inventories and additional OPEC+ barrels could cap gains, but further disruption in the Strait of Hormuz or unexpectedly aggressive Iran sanctions could quickly put Brent and WTI back under upward pressure.
