Crude Oil Prices Slip as U.S. Sanctions on Iran and OPEC+ Meeting Dominate Market Sentiment

Crude oil prices eased slightly in Asian trading on Tuesday, September 3, 2025, after touching one-month highs earlier in the session. Traders kept a close eye on fresh U.S. sanctions targeting Iran’s oil sector and looked ahead to the upcoming OPEC+ meeting for further market direction.

In the early hours of trading, prices held steady, but later in the day, both Brent and West Texas Intermediate (WTI) futures recorded minor declines. As of now, 03:12 PM IST, Brent has dipped 1.51% to $61.114.

U.S. Sanctions Heighten Supply Concerns

The latest round of sanctions announced by the U.S. Treasury Department has rattled energy markets. Restrictions were imposed on a network of companies and tankers allegedly disguising Iranian crude shipments as Iraqi oil. The move, which follows the collapse of nuclear negotiations between Washington and Tehran earlier this year, is expected to reduce Iran’s contribution to global supply in the months ahead.

Analysts warn that any significant disruption in Iranian exports could push prices higher, particularly if demand remains resilient in key consuming nations.

India–U.S. Oil Tensions Add Uncertainty

Beyond Iran, energy markets are also factoring in the growing friction between India and the United States. Washington recently imposed 50% tariffs on India’s imports of Russian oil, a decision that has sparked speculation of possible retaliation by New Delhi.

Reports have also suggested that European scrutiny could soon target Indian refiners, with sanctions already linked to a major refinery in the country. In addition, Saudi Arabia and Iraq were said to have paused shipments to India’s Nayara Energy this week, raising fresh doubts about the stability of global supply chains.

OPEC+ Meeting and U.S. Data in Focus

Attention now shifts to the upcoming meeting of the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) scheduled for September 7. The group had earlier raised output to unwind pandemic-era cuts, but this time analysts expect OPEC+ to hold production levels steady.

Still, some believe that weaker price trends through much of the year could encourage the alliance to consider tighter supply measures to prevent further softness. Alongside OPEC’s decision, traders will closely watch weekly U.S. inventory data for additional cues on short-term demand.

Conclusion

Crude oil markets remain caught between supply-side risks from sanctions and geopolitical disputes, and expectations of steady production from OPEC+. With fresh sanctions on Iran and tensions between Washington and New Delhi clouding the outlook, traders are bracing for heightened volatility in the days ahead.