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Market Insights > Daily Market Analysis New

Oil Extends Gains as Tougher Iran Sanctions and Weak Dollar Support Prices

Published: 21 August 2026,06:08

Daily Market Analysis New

Tags:

oil
us-iran

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Key Takeaways:

*Crude oil prices rise as the U.S. prepares tougher sanctions against Iran

*Limited progress on the Strait of Hormuz keeps supply disruption fears elevated

*A weaker U.S. dollar adds further support to oil prices

Market Summary:

Crude oil prices extended their gains as the United States prepared significantly tougher economic sanctions against Iran, while diplomatic progress over the Strait of Hormuz remained limited. The combination of renewed sanctions pressure and ongoing shipping disruptions kept traders focused on potential supply risks in the Middle East.

President Donald Trump warned countries against providing economic support to Iran, while Treasury Secretary Scott Bessent said Washington was preparing what he described as its toughest sanctions yet. The tougher stance raised concerns that Iranian oil exports could face further restrictions, tightening supply expectations and supporting crude prices.

Brent crude climbed above $93 per barrel, while WTI moved toward $88, with both benchmarks reaching their highest levels in more than three weeks. The rally reflected a renewed geopolitical risk premium as markets reassessed the possibility of prolonged disruption to regional energy flows.

Shipping through the Strait of Hormuz also remains far below normal levels. Recent data showed only nine commodity vessels passing through the waterway in a day, despite U.S. claims that the strait remains open. This gap between official statements and actual shipping activity has kept investors cautious about the reliability of energy flows through one of the world’s most important oil transit routes.

A weaker U.S. dollar has also provided additional support for oil prices. Since crude is priced in dollars, a softer greenback makes oil cheaper for holders of other currencies, improving demand and adding momentum to the price rebound.

Overall, oil remains supported by three key factors: tougher U.S. sanctions risk, limited recovery in Hormuz shipping activity, and a weaker dollar. Unless diplomatic progress improves or shipping flows normalise meaningfully, crude prices may remain biased to the upside in the near term.

Technical Analysis

Trading chart showing price action with blue support/resistance lines, orange trend line, and a red support box; RSI and MACD indicators shown below the chart.

Crude Oil, H4:

Crude oil prices are trading higher, currently testing the 86.95 resistance level, which acts as a key near-term breakout zone.

Momentum remains broadly supportive, with the RSI at 62 staying above the midline, suggesting that buyers still maintain short-term control. A confirmed breakout above 86.95 could extend gains toward the next resistance level at 93.40, reinforcing the bullish structure.

However, momentum indicators are also showing signs of caution. The MACD is beginning to show fading bullish momentum, while the RSI has eased from higher levels, suggesting that crude oil may face a short-term technical correction if the breakout fails.

If bullish momentum fails to persist, crude oil may retrace and retest the 80.80 support level, followed by 74.95 if selling pressure strengthens.

Resistance Levels: 86.95, 93.40

Support Levels: 80.80, 74.95

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Oil Extends Gains as Tougher Iran Sanctions and Weak Dollar Support Prices

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