US Threatens Iran with 'Toughest Sanctions in History' as Oil Prices Decline

Crude oil prices declined on Friday after the US threatened to impose its 'toughest sanctions in history' on Iran. US Treasury Secretary Scott Bessent stated that this move would likely negate the need for major US military operations against Iran, as it aims to crush the country's economy.

The threat sent crude oil futures lower, with September crude oil futures trading at ₹8,282 on MCX during the initial hour of trading, down 0.26% from the previous close of ₹8,304. October Brent oil futures were also down, trading at $93.46, a decline of 0.34%, while October WTI futures were at $86.40, down by 0.50%. US President Donald Trump had stated on Wednesday that the US plans to choke Iran's economy by levying major penalties against any country providing 'any type of lifeline' to Iran.

The move is seen as an attempt to isolate and defeat the Iran threat, with Bessent stating that it would be an 'ECONOMIC D-DAY'. The administration's plan aims to crush Iran's economy through economic pressure rather than military force. September natural gas futures were trading at ₹267.70 on MCX during the initial hour of trading, up 0.94% from the previous close.