Oil prices rose on Thursday after U.S. Treasury Secretary Scott Bessent said new economic measures would 'collapse' Iran, amid sharpened rhetoric from President Donald Trump.
Key facts
- Oil prices moved higher on Thursday, August 20, 2026.
- U.S. Treasury Secretary Scott Bessent said new economic measures would 'collapse' Iran.
- President Donald Trump sharpened his rhetoric against Iran, according to CNBC.
- Bessent has not said whether countries such as China could be targeted to economically isolate Tehran, according to Al Jazeera.
Oil prices moved higher on Thursday after U.S. Treasury Secretary Scott Bessent said new economic measures would ‘collapse’ Iran, according to reporting from CNBC and Al Jazeera.
The gains came as U.S. President Donald Trump sharpened his rhetoric against Iran, CNBC reported. The escalation in tone from Washington coincided with the upward move in the market.
According to Al Jazeera, Bessent framed the new measures as part of an effort to economically isolate Tehran. He has not said whether countries such as China could be targeted as part of that campaign.
The rise in oil prices reflects how energy markets can react to geopolitical developments involving major oil-producing regions and to signals of intensifying economic pressure from the United States.
CNBC’s coverage of the developments referenced the Strait of Hormuz, a key waterway for global oil shipments, alongside its reporting on the Treasury Secretary’s comments and Trump’s remarks.
Why it matters
Oil prices influence the cost of fuel and goods for consumers and businesses worldwide, so market reactions to U.S.-Iran tensions can have broad economic effects. Signals that Washington intends to escalate economic pressure on a major oil producer raise questions about supply, trade and diplomatic relations with other countries.
Frequently asked questions
Why did oil prices rise on Thursday?
According to CNBC and Al Jazeera, oil prices moved higher after U.S. Treasury Secretary Scott Bessent said new economic measures would 'collapse' Iran and President Donald Trump sharpened his rhetoric against Tehran.
What did the Treasury Secretary say about Iran?
Al Jazeera reported that Scott Bessent said new economic measures would 'collapse' Iran as part of an effort to economically isolate the country.
Could other countries be affected by the measures?
According to Al Jazeera, Bessent has not said whether countries such as China could be targeted in the effort to economically isolate Tehran.