FX.co ★ Oil Falls Ahead of Further US Sanctions on Iran

Crude oil prices fell more than 2% on Monday to below $85 a barrel, snapping a two-week rally as traders awaited details of a new US plan to tighten economic pressure on Iran. Treasury Secretary Scott Bessent said the goal is to sever Tehran’s key economic lifelines, though it remains unclear how far additional measures can go. Any move to target China—currently the largest buyer of Iranian crude—could significantly increase pressure on Tehran but would also raise the risk of wider economic fallout. Iran has repeatedly shown its ability to bypass sanctions and has warned states against backing Washington’s strategy. For now, oil continues to transit the Strait of Hormuz, with shipments holding up relatively well despite persistent geopolitical tensions. Reports indicated that about 16 million barrels passed through the chokepoint in a single night last week, though flows can fluctuate considerably.