On Monday, oil prices dipped nearly 2% amid speculation that the United States would soon announce further sanctions against Iran, which are set to be unveiled by Treasury Secretary Scott Bessent later today, said news outlet The Times of India.
Brent crude, the global benchmark, traded lower by $1.90 or nearly 2% at $92.60 per barrel. U.S. West Texas intermediate crude also dropped $1.76 or about 2% to trade at $85.20 per barrel, an exchange rate quoted by the Economic Times citing market data.
Last week, however, oil prices had surged over 5% amidst worries about supply levels due to no signs of progress from ongoing conversations between the U.S. and Iran.
“The United States is engaging in this massive financial offensive in order to exert additional economic pressure on the Islamic Republic. This marks our endgame,” Bessent told reporters in Istanbul.
Treasury Secretary Bessent will be announcing the new sanction package Monday.
Tehran has threatened to hit back with sanctions if Washington continues its alleged economic war, which includes measures that would disrupt Iranian oil exports shipped through the strategic Strait of Hormuz, which sees much of the world’s supply of crude oil pass through it.
But for now at least, traders seem unfazed by these planned sanctions. In fact, oil prices had already dropped before Bessent announced, Reuters reported, since investors were weighing whether additional economic pressure would prompt Iran to get back into negotiations with Washington.
