US Sanctions on Iran Fail to Impress Markets

U.S. Treasury Secretary Scott Bessent announced an expanded secondary sanctions framework targeting Iran on Monday, but markets reacted tepidly to the measures.

The new sanctions aim to sever Iran's access to the global financial system, with Bessent describing it as 'the largest financial offensive in history.'

However, the oil market had already rallied significantly last week, and investors locked in profits after oil prices accumulated substantial gains. Brent crude futures settled down $2.22, or 2.35%, at $92.17 per barrel.

China is expected to be one of the primary targets of secondary sanctions, with the country currently being Iran's largest trading partner and biggest buyer of Iranian oil. The U.S.-China Economic and Security Review Commission reports that China imports around $15.6 billion worth of goods from Iran annually.