Oil prices fell on Monday after US Treasury Secretary Scott Bessent announced plans for further sanctions aimed at putting economic pressure on Iran.
The announcement expanded Washington’s threats of secondary sanctions and warned of serious consequences for countries that do not join the campaign. However, Bessent did not name specific countries beyond Iran or provide a timetable for the measures.
Oil prices fell by more than 2% following the announcement, as investors assessed the potential impact of the planned sanctions on global energy markets.
US markets mostly lower
Stock markets were mostly lower on Monday as investors turned their attention to key US inflation data and Nvidia’s upcoming earnings.
Although the Dow posted a small gain, the S&P 500 and Nasdaq both declined.
Despite the traditionally quieter news period at the end of August, the US-Iran war, the trade dispute between the United States and Canada and Nvidia’s results are keeping investors focused on the markets. The chipmaker is closely watched as a barometer for the artificial intelligence sector.
European markets mixed
In Europe, London’s stock market ended higher, while Paris and Frankfurt closed lower.
Investors will also closely follow this week’s annual gathering of central bankers, economists and financial officials in Jackson Hole, Wyoming, as they seek greater clarity on US monetary policy.
The meeting follows Bessent’s announcement that the US Treasury plans to buy back more of its own bonds in an effort to reduce borrowing costs. The move comes after the yield on 30-year US Treasury bonds reached levels last seen in 2007.
These developments could create complications for the Federal Reserve’s efforts to bring inflation down, according to Swissquote analyst Ipek Ozkardeskaya.
“This is why Jackson Hole could prove explosive,” she said.
Asian technology stocks under pressure
Earlier, Asian markets faced another wave of pressure on technology stocks as investors awaited Nvidia’s earnings report on Wednesday.
South Korea’s technology-heavy Kospi fell more than 3%, weighed down by a sharp decline in Samsung Electronics shares. Tokyo and Shanghai also ended lower.
Canadian dollar falls
In currency markets, the Canadian dollar fell 0.7% against the US dollar, extending its losses over the past month.
The decline came after Ottawa pledged to respond with countermeasures to new US tariffs following the collapse of trade talks between the two neighbouring countries.
Also read: US Canada trade war escalates after talks collapse
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