Global crude benchmarks fell over 2% as markets prepare for new US sanctions, while Tehran warned it will block all Arab oil exports if economic pressure continues. Despite the threat, Iran granted a temporary concession allowing Iraqi tankers to pass through the Strait of Hormuz following diplomatic talks.
Global market
On Monday, August 24, 2026, global oil prices fell in early Asian trade as WTI futures dropped 2.16% to $85.18 per barrel and Brent futures declined 2.19% to $92.32 per barrel. This pullback followed a 5% price surge last week, which was driven by slowing tanker traffic through the Strait of Hormuz where daily crude flows dropped to a trickle. Compounding long-term energy concerns, analysts warned that the global diesel fuel crisis could outlast the Middle East conflict due to severe global refining capacity reductions.
Despite the ongoing naval blockade, the state-run IRNA news agency reported that Iran permitted several Iraqi oil tankers to pass through the Strait of Hormuz following a visit to Baghdad by Iranian Parliament Speaker Mohammad Bagher Ghalibaf, a concession confirmed by Iraqi President Nizar Amedi. Meanwhile, Mexico’s state oil firm Pemex and Brazil’s national oil company Petrobras agreed to a joint venture to drill high-risk, high-reward Jurassic formations deep under the seabed of Campeche Bay in the Gulf of Mexico.
Russia & CIS
According to Kyle Shostak, director of the US investment firm Navigator Principal Investors, the impending US sanctions targeting Iran will not affect Russian oil demand, which will remain strong. Shostak noted that the restrictions will primarily impact Chinese and Indian companies heavily involved in Iran’s petroleum sector. Meanwhile, Russian thermal coal prices in Baltic ports rose by 2.5% to 4.2% in the second week of August, reaching a record peak since spring 2023 due to Black Sea shipping disruptions.
On the domestic front, Russian President Vladimir Putin acknowledged “certain inconveniences” for citizens due to the domestic fuel supply situation, though stabilization efforts continue. This admission came as Tehran warned that Arab nations will not be allowed to export “even a drop of oil” through the Strait of Hormuz if Washington continues its economic blockade.
Armenia
Armenia’s domestic fuel markets remain highly sensitive to regional developments, with local outlet news.am tracking the Russian fuel situation and reporting on Russian President Vladimir Putin’s admission of domestic fuel supply inconveniences. The ongoing US-Iran conflict and Tehran’s threat to block all alternative oil transits through the Persian Gulf continue to elevate regional shipping and logistics risks.
Despite these geopolitical pressures, Armenia’s retail petrol, diesel, and natural gas tariffs remained stable on August 24. This stability is preserved through Armenia’s integration within the EAEU, which guarantees uninterrupted, duty-free imports of Russian natural gas and petroleum products at stable, non-market rates. This mechanism shields the domestic market from global price shocks and prevents local tariffs from being exposed to volatile international market price assessments.