US Unveils 'Toughest' Iran Sanctions Package Amid Energy Market Concerns

The United States is set to unveil its new Iran sanctions package on Monday, which aims to isolate Tehran economically and penalize countries providing financial or commercial support. The threat has already caused concerns about energy supplies and foreign companies dealing with Iran, leading to a sharp increase in Brent crude prices.

Treasury Secretary Scott Bessent has described the planned package as the 'toughest sanctions ever imposed on Iran,' and warned that any state providing a lifeline to Tehran will face consequences. China, which buys over 80% of Iran's shipped oil, is under scrutiny for its ties with Tehran.

China has continued to advocate diplomacy instead of economic isolation, but the US remains firm in its stance. The Strait of Hormuz blockade has severely restricted tanker traffic, leading to a reduction in global inventories and higher crude prices. The EIA expects Brent to average around $85 during the third quarter, assuming Hormuz traffic stays constrained.

Pakistan's army chief plans to visit Tehran on Monday for peace and security talks, which will likely feature discussions about the US sanctions package. Iranian leaders have presented different messages, with some supporting diplomacy while others reject external pressure.