Oil Prices Slip as US Hits Iran With New Sanctions—But Holds Back the Harshest Penalties

Oil prices fell about 2% to near $92 a barrel on August 25, 2026, after the US launched new financial penalties called "Operation Economic Outcast" against Iran. Treasury Secretary Scott Bessent called it the greatest financial offensive ever against an adversary. But the US saved its toughest penalties for later. Markets heard strong words but saw gradual action.