Sanctions Must Match Rhetoric or Oil Rally Falters

The recent rally in crude oil prices may be short-lived if sanctions on Iran do not match the rhetoric coming from Washington.

Last week, US officials built expectations of tough sanctions with Trump talking about economic warfare and isolation.

The market responded by buying crude for five straight sessions without seeing any details, but Monday's press conference is where language meets specifics.

The package matters because it can reach beyond Iranian barrels into the buyers, banks, insurers, and shippers that keep the trade moving. Pressure on these companies closes another outlet at a time when Iranian exports are already shrinking under a naval blockade.