FX.co ★ Oil Slips Ahead of Tougher Iran Sanctions

Crude oil eased to around $86 per barrel after a sharp weekly rally, as investors locked in profits ahead of an anticipated US announcement on tougher sanctions against Iran. US Treasury Secretary Scott Bessent said Washington would introduce the “toughest” sanctions in history, calling them an unprecedented campaign of economic isolation aimed at pressuring Iran and its trading partners into compliance.

The measures risk further tightening global oil supplies, with Iranian exports already heavily disrupted and offers to Chinese buyers declining amid the US blockade. Tehran dismissed the sanctions threat as yet another unsuccessful attempt to exert pressure, saying it has long experience in withstanding economic blockades and can continue to maintain trade and economic relations with other countries.

At the same time, tensions around the Strait of Hormuz remain elevated, and traffic through this key oil transit route is still significantly below normal levels.