WTI Oil retreats toward $85 ahead of US economic offensive against Iran

West Texas Intermediate (WTI) oil prices have declined by 1.55% to around $85.00 per barrel, as investors take profits before new US sanctions against Iran are announced. The Treasury Secretary, Scott Bessent, plans to unveil aggressive economic measures targeting Iran's oil exports and trading partners in an unprecedented "economic offensive."

This could lead to reduced Iranian oil supply as the country threatens to halt exports if faced with further pressure. Iran, however, remains defiant, warning that cooperation with the US could be considered an "act of war." The Strait of Hormuz, a crucial oil transit route, remains a source of geopolitical uncertainty. Despite the potential for supply disruptions, the market appears to be focused on profit-taking rather than a significant shift in the supply outlook.