US Launches Economic Campaign Against Iran, Oil Prices Dip
On August 24th, the United States announced its economic campaign against Iran, which President Donald Trump called 'Iran economic D-Day'. The move aims to target not only Iran but also countries that assist Tehran, including those that purchase Iranian oil. US Treasury Secretary Scott Bessent vowed to introduce the harshest sanctions in history, while details of the measures are yet to be announced.
The price of Brent crude had reached $94.39 per barrel on August 23rd before the announcement, a 2.36% gain from its previous close. However, it declined to approximately $93.17 on Monday, August 24th, a drop of 1.29%. Oil prices rose during the week leading up to Washington's announcement and fell slightly on August 24th.
The Strait of Hormuz, through which about 20% of global oil supplies pass, remains open for now. Iranian officials have warned that if the economic war continues, all oil supplies from the Persian Gulf could be blocked. The Iranian rial has hit a record low at approximately 2.02 million rials per dollar on the unofficial market.