Asian Markets, Oil Prices Decline Amid Iran Sanctions Uncertainty

Asian markets and oil prices dipped on Monday as investors await details of threatened US sanctions on Iran, which is expected to be announced by Treasury Secretary Scott Bessent later in the day. The Canadian dollar weakened after Prime Minister Mark Carney said Canada would respond to US tariffs with its own tariffs. The technology sector is also on edge ahead of Nvidia's quarterly earnings release on Wednesday, with analysts expecting revenue to nearly double to around $92 billion.

The Federal Reserve Chair Kevin Warsh will speak in Jackson Hole, Wyoming, on Friday, providing insight into the outlook for US interest rates, but his reluctance to provide forward guidance could disappoint investors. Markets are pricing in a 40% chance of a rate hike by the Federal Reserve when it meets on September 16 and a full price-in of a move by December.

The dollar rose 0.2% against the Canadian dollar after Carney's announcement, while gold continued its rally, gaining 0.8% to $4,653 an ounce. Brent crude fell 1.4% to $93.07 a barrel ahead of the sanctions announcement, and US crude eased 1.6% to $85.64 a barrel.