Crude Oil Prices Fall as Iran Tensions Persist, Set for Weekly Loss | August 28, 2026

Crude oil prices fell on Friday, August 28, 2026, as investors weighed ongoing tensions between the United States and Iran against signs that diplomatic efforts were becoming more difficult, as per news report. Both major benchmarks were heading for weekly losses after a two-week run of gains. 

Brent crude futures fell 25 cents, or 0.3%, to $89.45 a barrel by 0035 GMT. West Texas Intermediate (WTI) crude futures declined 22 cents, or 0.3%, to $83.31 a barrel. 

Brent was on track to fall 5.3% for the week, while WTI was headed for a 4.3% decline. 

US-Iran Tensions Keep Oil Markets Cautious 

Oil prices settled higher in the previous session after a Wall Street Journal report said US President Donald Trump was not interested in returning to the terms of an earlier agreement with Iran. 

The report, citing people familiar with the matter, said the Trump administration had repeatedly told mediators that it did not want to revive the June memorandum of understanding. The development has added another hurdle to efforts to restart discussions between Washington and Tehran. 

Washington said on Thursday that it was not holding talks with Iran, despite attempts by other countries to bring the two sides back to negotiations. 

Iran Sanctions Add to Supply Concerns 

The US announced what it described as the “toughest sanctions in history” on Iran earlier this week. Tehran criticised the measures as an inhumane and hostile act and said they had lost their effectiveness. 

For oil markets, the standoff remains important because any further deterioration in US-Iran relations could affect supply expectations and add volatility to crude prices. 

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Russia-Ukraine Tensions Also in Focus 

Geopolitical risks extended beyond the Middle East. Moscow warned that it could target British military facilities inside and outside Ukraine following Ukrainian attacks on Russian territory using British-supplied long-range cruise missiles. 

Trump said Russian President Vladimir Putin would not attack a NATO country and dismissed reports that CIA Director John Ratcliffe had warned Russian officials against such action. Britain is a founding member of NATO. 

Conclusion 

Crude oil prices remain under pressure despite persistent geopolitical risks. With US-Iran relations uncertain and tensions involving Russia and Ukraine continuing, traders are likely to remain focused on diplomatic developments and their potential impact on energy supplies. 

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