Oil Prices Plummet as US Announces New Sanctions Against Iran

New sanctions against Iran announced by the US Treasury Secretary Scott Bessent sent oil prices plummeting, with Brent crude falling 3% to $88.19 per barrel and US benchmark crude shedding 3% to $82.36 per barrel.

The drop in oil prices helped calm worries in the bond market, with treasury yields falling, and supported stock prices, as major indexes rose: S&P 500 up 0.4%, Dow Jones Industrial Average adding 170 points, and Nasdaq composite climbing 0.7%.

The US administration's new sanctions were met with a strong response from Canada, which announced it will introduce retaliatory tariffs against the US, while President Donald Trump threatened to impose 50% tariffs on Canadian vehicles, auto parts, and steel.