US Sanctions Iran, Crude Prices Plummet Amid Global Market Uncertainty

The U.S. has unveiled a new sanctions campaign against Iran as part of 'Operation Economic Outcast,' which aims to cut off the country's oil exports entirely. Treasury Secretary Scott Bessent has called this an 'economic D-Day' and warned that countries should weigh the cost of testing Washington just as much as they fear defying Tehran.

The move has sent oil prices tumbling, with Brent crude ranging from $70 to $100 per barrel in the second half of 2026. The Commonwealth Bank of Australia expects oil to remain choppy through this period, and notes that only 50% to 60% of pre-war volumes via the Strait of Hormuz would be enough to shift the market toward oversupply.

Iran is not backing down, with the Islamic Revolutionary Guard Corps claiming Tehran has ways to counter the enemy's war and can easily build economic ties with other nations. The back-and-forth between Washington and Tehran has energy markets on edge, making oil a bumpy ride for investors in the short term.