ETO Markets Global Pulse: WTI Holds $84 as Iran Sanctions Escalate

Market Review

According to ETO Markets monitoring, on August 19 (Wednesday), WTI crude closed at USD 84.40 per barrel, down 0.79% on the day. Brent crude settled at USD 91.54 per barrel, up 0.29%. Both benchmarks touched their highest intraday levels since July 24, supported by escalating geopolitical tensions in the Middle East.

On August 20 (Thursday) during early Asian trading, WTI crude traded near USD 84.54 per barrel. Trump announced the “harshest” economic sanctions on Iran and warned other countries not to provide any support to Tehran. Middle East risks continue to support oil prices.

Global Headlines

Trump Imposes Harsh Iran Sanctions

Trump announced on social media that the US will impose the most destructive economic sanctions ever used against any country. He said Washington had given Iran “the best chance to negotiate,” but Tehran failed to take it. The US will now launch what he described as an unprecedented economic war and isolation campaign. Trump also warned that any country allowing its financial institutions, companies, airports, or government bodies to support Irans survival will face severe economic consequences.

Trump Targets Iran Support Networks

Trump demanded an immediate end to all activity supporting Iran, including oil smuggling, currency swaps, cash transfers, ship registration, and shell-company operations. He described the move as an “economic Normandy landing” and called on US allies to stand with Washington in isolating Iran.

Treasury Expands Long-Bond Buybacks

The US Treasury announced that it will at least double the size of liquidity-support buybacks for long-dated nominal coupon securities. The per-operation cap for both the 10-to-20-year and 20-to-30-year maturity buckets will rise from USD 2 billion to at least USD 4 billion. The adjustment will take effect on September 9 and remain in place through the current refunding quarter.

FED Minutes Signal Hawkish Bias

The FEDs July meeting minutes showed that most officials supported keeping rates unchanged, but several favored a 25bp rate hike. Many participants said further rate increases may be needed if inflation does not continue to ease. Some officials argued that current financial conditions are not restrictive enough to bring inflation back to the 2% target, while price increases in goods and services have become more widespread.

Trump Criticizes High FED Rates

Trump said US interest rates should be far lower than current levels and claimed that political factors exist within the FED Board. He said FED Chair Kevin Warsh, who took office in May, is “doing well.” Trump argued that lower rates would help sustain economic growth and reduce the financing burden on nearly USD 40 trillion in federal debt. He also said that while rates are unfairly high, he does not believe the US has a bond-market problem.

Bitcoin Returns Above $70,000

Bitcoin rose as high as USD 70,059.90, the highest level since early June, and recorded its strongest daily gain since March. Coinglass data showed that more than USD 1 billion in Bitcoin short positions were liquidated within about one hour, marking the largest Bitcoin short squeeze since records began in 2021. Trump also met with representatives from Coinbase, Payward, and Blockchain.com at the White House.

ETO Markets Analyst View (WTI Crude)

WTI crude is currently trading above the 81.70 level. While Middle East tensions continue to support prices, the technical model still treats 81.70 as the key pivot.

If prices fall back below 81.70 and remain capped under this level, downside pressure may return. In that case, the 78.50 area will be the next key support. A sustained break below 78.50 could open further downside toward 76.50.

Current market pricing remains driven by the escalation of US sanctions on Iran, Middle East geopolitical developments, FED policy expectations, and long-end Treasury liquidity measures. Please carefully assess trading rhythm and risk exposure.

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