Mediation efforts ease geopolitical tensions, pushing oil prices lower despite US sanctions tightening on Iran’s crude exports.
Brent crude fell to $89 as hopes for Iranian negotiation progress offset US sanctions pressure. The Trump administration’s ‘Economic D-Day’ sanctions and a US Navy blockade in the Gulf of Oman have slashed Iran’s crude exports.
Iran’s August exports averaged just 0.3 million barrels per day, down sharply from the 2025 average of 1.7 million b/d. The decline reflects intensified US efforts to curb Tehran’s oil trade amid ongoing geopolitical tensions.
Markets reacted to the potential easing of supply disruptions, though the long-term impact of sanctions remains uncertain.