US President Donald Trump has threatened to impose sweeping economic sanctions on Iran as Tehran warns that it could halt oil exports from the Gulf if Washington continues its economic pressure.
President Donald Trump has vowed to launch what he described as the “most crushing” financial operation against Iran, with the United States preparing new sanctions targeting countries and businesses that continue trading with Tehran.
The move comes as Iran threatens to shut down oil exports from the Gulf if what it calls the US economic war continues.
Although the United States, Israel and Iran have not exchanged direct military strikes for several weeks, tensions remain high and efforts to negotiate an end to the six-month conflict have yet to produce a significant breakthrough.
The conflict has reportedly killed thousands of people, mainly in Iran and Lebanon, after the United States and Israel launched military strikes against Iran on February 28.
The strikes significantly weakened Iran’s conventional military capabilities and caused widespread economic disruption. Iran’s Supreme Leader, Ayatollah Ali Khamenei, was also killed during the conflict.
Oil Prices Fall Amid Economic Uncertainty
Oil prices declined on Monday as investors awaited details of the new US sanctions.
Brent crude fell about 1.8 percent to $92.68 per barrel, while West Texas Intermediate dropped around 1.9 percent to $85.39 per barrel.
The fall came despite concerns that an Iranian decision to halt oil exports could disrupt global energy supplies.
US Treasury Secretary Scott Bessent was expected to provide further details on Washington’s plans to increase economic pressure on Tehran.
The United States has also urged its allies and China to support the campaign.
Vice President JD Vance acknowledged that the strategy would be a “delicate dance”, given the possibility that Iran could respond with economic measures of its own.
Global Markets Under Pressure
The uncertainty surrounding the conflict also weighed on financial markets.
Asian stocks were mostly lower, with Hong Kong’s Hang Seng Index falling more than 2 percent and South Korea’s Kospi declining 1.4 percent.
Investors are also closely watching major technology companies as concerns over the sustainability of the global artificial intelligence investment boom continue.
Nvidia, the world’s most valuable company, is expected to release its latest earnings report this week, while Alibaba has announced plans to raise about $10.2 billion through a new share issue in Hong Kong to finance its AI expansion.
Iran’s Oil Threat
Iran’s warning to halt Gulf oil exports represents a major potential risk to global energy markets.
The Gulf region is one of the world’s most important oil-producing areas, meaning any major disruption to exports could push energy prices higher and increase inflationary pressure in countries that depend heavily on imported crude.
For now, however, investors appear to be weighing the threat against the possibility of renewed negotiations between Washington and Tehran.
The conflict continues to create uncertainty for governments, businesses and financial markets worldwide as both sides maintain pressure on each other without reaching a lasting agreement.
