Oil prices steady after US sanctions on Iranian crude network

Oil prices held steady Wednesday after briefly rising on news of fresh U.S. sanctions targeting a scheme to disguise Iranian crude as Iraqi oil.

At midday, Brent crude traded at $68.93 per barrel and WTI at $65.42, both slightly below opening levels.

The U.S. Treasury announced sanctions on individuals and entities accused of blending Iranian oil with Iraqi shipments for export. “By targeting Iran’s oil revenue stream, Treasury will further degrade the regime’s ability to carry out attacks against the United States and its allies,” Treasury Secretary Scott Bessent said.

Washington is also eyeing trade measures against Brazil, which has emerged as a key buyer of Russian diesel despite U.S. opposition.

Meanwhile, U.S. crude inventories are expected to show a 3.4-million-barrel draw for the last week of August, ahead of API and EIA reports due later this week.

Looking ahead, OPEC+ is set to meet this weekend, with analysts predicting no change in October output. The group has already added 2.2 million barrels per day to the market over the past six months. Still, some warn OPEC+ could reverse course and cut production again if surplus forecasts prove exaggerated—posing a potential upside risk for prices.