Brent holds ground as market braces for US sanctions on Iran

The front-month ICE Brent contract has inched $0.13/bbl lower on the day from Friday, to trade at $92.78/bbl at 09.00 GMT.

IMAGE: Oil storage facility. Getty Images

Upward pressure:

Brent crude’s price has opened this week trading above $90/bbl, as market participants anticipate US' economic sanctions against Iran.

The US treasury secretary Scott Bessent will hold a press conference at 18.00 GMT today, to announce economic measures against Iran.

His comments follow shortly after US President Donald Trump vowed sweeping sanctions on Iran and its allies.

Bessent has called the move an “economic D-Day” for Tehran, putting upward pressure on Brent crude’s price.

Brent crude’s price has found support “as expectations of a near-term resolution to the Middle East conflict faded,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Downward pressure:

While there is no new downward pressure acting on Brent, market participants will keep an eye out for US crude stocks data, scheduled to come out later this week.

Commercial US crude oil inventories increased by 4.4 million bbls to 429 million bbls in the week ending 14 August, according to data from the US Energy Information Administration (EIA).

A build in US crude stocks typically indicates lower demand for oil and can put some downward pressure on Brent's price.

By Aparupa Mazumder

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