US Sanctions Send Oil Prices Reeling Amid Shift in Iran Policy
Oil prices plummeted over 3% on Tuesday after the US government signaled a shift towards economic pressure rather than military strikes against Iran. The move comes as Washington unveiled a fresh round of sanctions targeting Iran and its 'enablers' that continue trading with Tehran.
The White House called this campaign an 'economic D-Day', while Treasury Secretary Scott Bessent referred to it as the 'single greatest financial offensive ever'. The State Department is preparing to return evacuated US diplomats to the Middle East, suggesting Washington does not anticipate a return to full-scale warfare.
However, Defense Secretary Pete Hegseth left the door open for further action, stating 'If we need to use kinetic strikes, we'll use them.' Beijing pushed back against the sanctions, with Chinese Foreign Ministry Spokesperson Lin Jian saying China would 'do everything necessary to firmly safeguard its rights and interests.'