Oil Drops 2% as Trump Threatens Iran With Economic War
Global oil prices fell on Monday as investors awaited details of a new US plan to intensify economic pressure on Iran.
President Donald Trump described the proposed measures as the “most crushing” financial operation ever directed at Tehran, raising concerns about the possible impact of the escalating Middle East conflict on global markets.
Both major crude benchmarks declined by about two per cent. Brent crude fell 1.8 per cent to $92.65 a barrel, while West Texas Intermediate dropped 2.3 per cent to $85.06.
US Treasury Secretary Scott Bessent was expected to provide further details on the measures during a news conference. Washington has also urged its allies and China to support the campaign against Iran.
US Vice President JD Vance described the strategy as a delicate balancing act, acknowledging that Iran could respond with economic pressure of its own.
The development came as investors also monitored movements in global stock markets and the technology sector.
Asian equities were largely lower, with South Korea’s Kospi falling more than three per cent. Tokyo’s Nikkei declined 0.7 per cent, while Shanghai’s Composite Index fell 0.6 per cent and Hong Kong’s Hang Seng dropped 1.7 per cent.
Technology stocks remained under pressure ahead of Nvidia’s earnings report, with investors looking for evidence that the artificial intelligence boom can sustain the huge investments being made across the industry.
Alibaba also announced plans to raise about $10.2 billion through a new share issue in Hong Kong to support its global artificial intelligence expansion.
Investors are additionally watching developments in US monetary policy ahead of the annual Jackson Hole gathering of central bankers, economists and financial officials.
Concerns over inflation and rising government debt have pushed US borrowing costs higher, with federal debt recently surpassing $40 trillion.
In Europe, London’s FTSE 100 was broadly flat at the open, while Paris and Frankfurt each fell about 0.2 per cent.
Market participants are expected to continue monitoring developments around Iran, global interest rates and the technology sector as investors assess the potential impact on economic growth and financial markets.
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