US Imposes Toughest-Ever Sanctions on Iran, Oil Prices Plummet

The United States has rolled out its toughest-ever sanctions campaign against Iran, targeting the country's economy and oil exports. According to Treasury Secretary Scott Bessent, the strategy is an 'economic D-Day,' warning those who defy Tehran of the costs they will incur.

Brent crude futures settled down $2.22, or 2.35%, to $92.17, while WTI fell $2.05, down 2.35%, at $85.01. The US Treasury Department has expanded secondary sanctions against entities and countries maintaining business ties with Iran worldwide.

Iran has pushed back, with the Islamic Revolutionary Guard Corps stating they have ways to counter the adverse effects of these measures and can easily establish economic relations with other countries.

Commonwealth Bank of Australia warned that if the US measures are effective, Iran's ability to respond via increased violence would become a growing risk for energy markets. Raymond James investment strategy analyst Pavel Molchanov noted there was nothing new in Bessent's commentary beyond what was already telegraphed.