Oil falls ahead of US plan for economic war on Iran

Oil prices dropped on Monday as investors awaited details of the US plan to impose massive economic pressure on Iran. The US Treasury Secretary, Scott Bessent, was set to release new actions against Tehran in a press conference. Bessent described the US actions as the single greatest financial offensive against an adversary, calling it an economic D-Day.

Both main crude contracts fell about two percent, with Brent still trading above $92 a barrel after a more than seven percent jump last week. Although some investors saw relief in the shift from military strikes to super sanctions, there was little confidence in a peace deal opening soon. Markets in London, Frankfurt, and Paris were flat, while Asian markets suffered from a fresh wave of pressure on technology stocks.

The US, changing tactics in its battle against Iran, aims to get oil flowing more freely from the region through super sanctions, rather than military strikes. The AI sector remained a focus for investors, with Nvidia's earnings report awaited. Other tech giants, Alibaba and Tencent, also drew attention for their AI ambitions. Central bankers gathered in Jackson Hole for clearer insight into US monetary policy.

The US reported a federal debt topping $40 trillion, and Canada's dollar weakened against the US dollar due to potential retaliation for new US tariffs.