At a Glance
Washington is preparing tougher sanctions targeting Iran and its trading partners.
Iran has warned it could stop all oil exports from the Gulf if the economic pressure continues.
Brent crude fell 1.3% to $93.16, while WTI dropped 1.6% to $85.70.
The Strait of Hormuz remains a major risk for global oil supplies.
A new sanctions push is putting the spotlight back on Middle East oil flows, with traders watching the Strait of Hormuz closely.
The U.S. is preparing what Treasury Secretary Scott Bessent called the “greatest financial offensive ever marshalled” against Iran, while Tehran has threatened to halt oil exports if the economic pressure continues.
The escalation comes as the six-month conflict remains unresolved and shipping through the Strait of Hormuz faces major disruption.
KEY DETAILS
Bessent is expected to announce tougher sanctions targeting Iran and countries that continue trading with its economy. President Donald Trump has also threatened sanctions against Iran’s trading partners.
Iranian official Mohsen Rezaei warned that “not a single drop” of oil would be exported through the Strait of Hormuz or elsewhere in the Persian Gulf if the economic war continues.
The waterway is especially important for energy markets, with roughly one-fifth of the world's oil supply historically passing through it.
MARKET REACTION
Oil prices slipped ahead of the U.S. announcement as traders took profits after two straight weekly gains.
Brent fell $1.23, or 1.3%, to $93.16, while WTI dropped $1.36, or 1.6%, to $85.70.
At the same time, Middle East supply is tightening, with analysts pointing to falling oil-on-water volumes and declining inventories in China.
WHY IT MATTERS
For traders, the biggest risk is how Iran responds to new sanctions. Any further disruption around the Strait of Hormuz could quickly raise concerns about global crude supplies and fuel prices.
Markets will watch Bessent’s sanctions announcement, Iran’s response, and shipping activity through Hormuz for clues about where oil prices go next.
Every headline is an opportunity — don't watch it from the sidelines. Trade it live on TradeQuo.
Source: Reuters
Time: 11:45 AM EEST
