Iran Sanctions, Trade Tensions Weigh on Oil Prices

Oil prices took a hit on Monday as economic tensions between the US and Iran continued to escalate. The possibility of new sanctions against Tehran, combined with renewed trade frictions between the US and Canada, weighed heavily on market sentiment.

The Brent crude futures for November delivery traded at $91.09 per barrel, down 0.5% from the previous close of $91.59. West Texas Intermediate (WTI) crude futures for October delivery traded at $85.22 per barrel, down 0.9% from $86.02.

US Treasury Secretary Scott Bessent announced new economic measures against Iran on Monday, calling it an 'economic D-Day' aimed at severing Tehran's remaining economic lifelines. President Donald Trump also threatened what he called the 'most crushing economic operation ever taken against any country,' warning of severe penalties for countries helping Tehran circumvent US sanctions.

Tehran rejected the pressure and warned of retaliation against countries supporting Washington's economic campaign. The Iranian parliament's National Security and Foreign Policy Committee on Sunday approved a provision in a draft law allowing Tehran to charge ships passing through the Strait of Hormuz, potentially easing concerns over a complete disruption to oil flows.