Commodities
US Sanctions Threaten to Deepen Iran's Economic Woes Amid Ongoing Strait of Hormuz Blockade
Iran is bracing for the impact of new US sanctions, which could exacerbate its economic strain. The country has already been under immense pressure from previous sanctions and the ongoing war in the Strait of Hormuz.
The Strait's oil traffic has plummeted to a seven-day average of 8 million barrels per day, down from over 20 million before the conflict. Iran has granted permission for some Iraqi oil tankers to pass through, but it is still restricting unauthorized vessels.
US Secretary Scott Bessent has threatened 'the toughest sanctions in history' on Iran, with a press conference scheduled for Monday. China, which buys over 80% of Iran's oil, has been urged by the US to cooperate. However, Beijing has called for diplomacy instead.