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Oil Shrugs Off Trump’s ‘Toughest Sanctions in History’ on Iran as Hormuz Risk Dominates
oilprice.com · August 29, 2026 · Week 2026-35
Summary
New US sanctions on Iran have had a limited impact on oil prices, which remain near $90/bbl, as the market is more focused on the physical risk of disruption to shipping through the Strait of Hormuz. Saudi Aramco is mitigating this risk by selling crude loaded from its western ports, bypassing the strait. Mediation efforts by Qatar and Pakistan have so far failed to de-escalate the situation.
Strategic Implication
Highlights the market's focus on physical chokepoint risk over sanctions policy and underscores the strategic value of Saudi Arabia's alternative export routes via the Red Sea.