Oil prices slip as Trump readies ‘crushing’ Iran economic campaign

Oil prices dipped on Monday as traders anticipated the US plan to economically isolate Iran, which President Donald Trump described as the "most crushing" financial operation against Tehran. Brent North Sea crude oil and West Texas Intermediate both experienced declines, with Brent dropping 1.8 percent to $92.68 a barrel and West Texas Intermediate falling 1.9 percent to $85.39.

US Treasury Secretary Scott Bessent indicated that further details would be provided at a press conference on Monday about the intensified pressure on Iran's economy. The US called on allies and China to join the campaign, which comes as the unpopular war in the Middle East enters its sixth month. Vice President JD Vance described the plan as a "delicate dance" due to Iran's attempts to apply economic pressure on the US.

Bessent suggested that discussions with China would likely be private, urging Beijing to "get with the program." Asian stocks were mostly down in early trading, with South Korea's tech-heavy Kospi falling 1.4 percent following Samsung Electronics' $80 billion share buyback amid a tech market downturn. Nvidia, the world's most valuable company and a bellwether for AI, was a focal point as investors awaited its earnings report, questioning whether the AI boom would continue.

Alibaba, a Chinese tech giant, announced plans to issue $10.2 billion in new shares in Hong Kong to fund its global AI initiatives. The company's AI investments have attracted significant attention, with shareholders eager to see how it will generate returns. Stocks in Tokyo, Shanghai, Taipei, and Wellington declined on Monday, while Sydney, Jakarta, and Bangkok saw gains, while Manila and Kuala Lumpur remained flat.

Hong Kong experienced a decline of over 2 percent, despite Shein's scheduled market debut in Hong Kong on September 1, which was expected to value the company at nearly $27 billion. Traders would also be monitoring the annual Jackson Hole gathering of central bankers, economists, and finance chiefs, seeking clarity on monetary policy following the US Treasury's recent bond purchases to lower borrowing costs, driven by inflation concerns and a federal debt exceeding $40 trillion.