{
  "id": 3384668,
  "title": "Oil settles down more than 3pc",
  "url": "https://urgent.news/2026/08/25/oil-settles-down-more-than-3pc",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-25T23:57:24.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40436538/oil-settles-down-more-than-3pc"
  },
  "original_language": "en",
  "account": "Oil prices experienced a decline of over 3 percent, reaching a one-week low on Tuesday, as traders disregarded the latest US sanctions campaign targeting Iran. Brent crude futures dropped USD 3.59, or 3.9 percent, to USD 88.58 a barrel, marking the lowest level since August 14. US West Texas Intermediate crude futures also declined USD 2.65, or 3.1 percent, settling at USD 82.36, the lowest since August 13. Saxo Bank's head of commodity strategy, Ole Hansen, stated that the shift from military conflict to economic pressure in the US-Israeli war with Iran has alleviated some of the oil market's anxiety. The US sanctions announcement, unveiled by Treasury Secretary Scott Bessent on Monday, was perceived as less forceful than anticipated by some traders, as he did not disclose the targeted countries or the effective timeline of penalties, stating he would grant countries time to comply. The economic pressure campaign has rekindled hopes for talks between the US and Iran to resolve their conflict, which erupted when the US and Israel conducted military strikes on Tehran at the end of February. Iran and Oman reportedly discussed a proposal on Tuesday to establish a \"joint temporary navigational corridor\" through the Strait of Hormuz and devise a plan to clear the strait of mines, signaling a potential return to mediation efforts to end the war. However, Tuesday's substantial drop in oil prices may have been an overreaction by market participants, as Ritterbusch and Associates cautioned that the market could experience a sharp upward movement if Iran retaliates against the US sanctions and demonstrates confidence that major trading partners would resist Washington's pressure campaign. China, the largest buyer of Iranian oil, affirmed that its cooperation with Iran adheres to international law and should not be interfered with. Despite these developments, supply disruption risks persist, as Iran still possesses the capability to disrupt shipping, which maintains a residual premium in the oil price. On Tuesday, an oil tanker was struck by an unidentified projectile and disabled approximately nine nautical miles northeast of Oman’s Ash Shishah, according to the United Kingdom Maritime Trade Operations. Only two tankers transited the Strait of Hormuz on Monday, the lowest daily count of commodity vessels since early May, with both vessels entering the Gulf, as per shipping data.",
  "summary": "NEW YORK: Oil prices settled down more than 3 percent on Tuesday, at a one-week low as traders shrugged off the latest US sanctions campaign against Iran, viewing economic pressure less risky for oil supplies than a military escalation. Brent crude futures settled down USD 3.59, or 3.9 percent, at USD 88.58 a barrel, the lowest since August 14. US West Texas Intermediate crude futures fell USD…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}