Oil Prices Plunge on Fed Uncertainty and Trade Tensions with Canada

Oil prices declined on Monday amid escalating tensions between the US and Iran, renewed trade friction between the US and Canada, and uncertainty over the Federal Reserve's monetary policy outlook.

The international benchmark Brent crude futures for November delivery traded at $91.09 per barrel, down 0.5% from the previous close of $91.59, while the US benchmark West Texas Intermediate (WTI) crude futures for October delivery traded at $85.22 per barrel, down 0.9% from $86.02.

The uncertainty surrounding US-Iran relations remains a key driver in oil markets as planned US economic sanctions against Tehran add to tensions. US Treasury Secretary Scott Bessent announced new economic measures against Iran on Monday, describing the campaign as an 'economic D-Day' aimed at severing Iran's remaining economic lifelines.

The Canadian Prime Minister Mark Carney described last-minute US demands in trade negotiations as 'unfair' and 'uneconomic,' and said Canada would impose dollar-for-dollar retaliatory tariffs from September 8, weighing on broader market sentiment and oil prices.