Oil falls more than 3% as markets shrug off Iran sanctions
Brent settled at US$88.58 and WTI at US$82.36 as hopes of Iran-Oman talks eased supply fears despite continuing Hormuz disruption
US oil prices extended their losses in early trading on Wednesday (August 26, 2026), as renewed discussions between Iran and Oman raised hopes that the Strait of Hormuz could reopen.
West Texas Intermediate crude futures fell by US$1.37, or 1.7%, to US$80.99 as of 10.40pm GMT on Tuesday.
The contract had lost 3.1% on Tuesday, settling at its lowest level since August 13.
Iran said it had restarted talks with neighbouring Oman over managing the strategic waterway as Tehran faced increased economic pressure from US President Donald Trump.
The two countries have held intermittent discussions for several weeks about controlling traffic through the strait, which handled one fifth of global oil and liquefied natural gas shipments before the war began in February.
The United States announced an expansion of sanctions against Iran on Monday, seeking to cut the country’s economic lifelines.
Washington threatened penalties against countries that continued doing business with Iran but said the measures would not be imposed immediately.
