Crude oil futures fall ahead of expected US sanctions on Iran

Crude oil futures experienced a decline on Monday as investors anticipated the anticipated US sanctions against Iran. At 9:38 am, the price of Brent oil futures fell by 1.42%, reaching $91.35, while West Texas Intermediate (WTI) crude oil futures dropped 1.59%, settling at $85.68. On the MCX, September crude oil futures were trading at ₹8211, down 1.77% from the previous close of ₹8359, and October futures were at ₹8048, a 1.63% decrease from the prior close of ₹8181.

In a CNBC interview, US Treasury Secretary Scott Bessent revealed that the US was planning to enforce the "toughest sanctions in history" on Iran. Bessent stated that the economic pressure from the US would likely result in a lack of major military intervention. He suggested that the economic sanctions would effectively neutralize the need for significant US military operations against Iran.

Earlier in the week, US President Donald Trump announced plans to impose severe penalties on any country aiding Iran. In a Truth Social post, Trump declared that this action would be an "ECONOMIC D-DAY," and called for all US allies to join forces in isolating and defeating Iran's threat. Iran's National Security Council secretary, Mohsen Rezaei, warned that if any neighboring country participated in the US-led economic warfare, Iran would respond decisively.