Oil prices held steady on Wednesday as markets digested President Donald Trump’s announcement of sweeping new economic sanctions against Iran, while tensions in the Strait of Hormuz continued to weigh on global supply risks.
Brent crude futures for October delivery rose 1.8% to settle at $93.25 a barrel, while U.S. West Texas Intermediate crude for the same month gained 2.2% to $86.21, according to market data. Analysts cited the sanctions announcement as a key driver behind the upward price momentum, though gains were tempered by ongoing uncertainty over the future of critical shipping routes.
The Strait of Hormuz, a chokepoint for roughly 20% of the world’s oil and liquefied natural gas shipments, has seen commercial traffic slow to a fraction of pre-conflict levels. Iran has restricted passage in response to U.S. naval blockades, demanding the fulfillment of a June framework agreement before easing restrictions. The U.S. has asserted control over the waterway, escalating geopolitical risks that have historically disrupted energy markets.
The Trump administration also moved to ease domestic fuel constraints, with the U.S. Environmental Protection Agency announcing a temporary waiver allowing the sale of E10 gasoline—blended with 10% ethanol—at higher Reid Vapor Pressure levels starting September 1. The Department of Energy stated the measure aims to boost domestic supply by hundreds of thousands of barrels per day and reduce pump prices.
Energy Secretary Chris Wright emphasized the administration’s use of "every available tool" to cut regulatory barriers, while analysts at ING noted that sanctions and supply disruptions could further tighten global oil balances in the coming weeks. The AAA reported the national gasoline average stood at $4.1044 per gallon on Thursday, reflecting persistent retail price pressures despite policy interventions.
Markets remain focused on Iran’s response to the sanctions and the potential for further escalation in the region, with traders closely monitoring shipping data and inventory reports for signs of supply strain.
