Oil Market Response

On Monday, global oil prices slipped as traders awaited the details of an upcoming U.S. sanctions package aimed at Iran. The U.S. benchmark, West Texas Intermediate (WTI), fell roughly 1.3% to $85.93 per barrel, while the international benchmark, Brent crude, dropped 1.24% to $93.22 a barrel.

The decline reflects a cautious market stance as investors weigh the potential impact of Washington’s most aggressive sanctions campaign on the region.

U.S. Sanctions Announcement

U.S. Treasury Secretary Scott Bessent is scheduled to unveil the new sanctions package later that Monday. In a statement posted to X, Bessent described the impending measures as “an economic D‑Day” and “the single greatest financial offensive ever marshaled against an adversary.”

Last week, Bessent told CNBC that the United States intends to “collapse” the Islamic Republic with the toughest sanctions in history. The Trump administration has also urged its allies and other nations to sever economic ties with Tehran, warning that countries assisting Iran in evading sanctions could face severe financial penalties. President Donald Trump characterized the forthcoming measures as “Economic Warfare and Isolation on an unprecedented scale.”

Iranian Response

Iran has denied that the U.S. threat will cripple its economy. The Islamic Revolutionary Guard Corps stated that Tehran possesses the capability to counter the adverse effects of the “enemy’s war” and can easily establish economic relations with other countries, according to state‑run media outlets.

Market Outlook

The Commonwealth Bank of Australia (CBA) cautions that oil prices are likely to remain volatile for the remainder of the year as markets assess whether Washington’s push to isolate Iran will succeed and how Tehran might respond.

CBA noted that “it is unclear whether U.S. policy to economically isolate Iran will prove effective.” It added that if the sanctions achieve their intended effect, the risk of increased geopolitical tension could further destabilize energy markets.

Looking ahead, the bank projects Brent crude to trade between $70 and $100 a barrel in the second half of 2026. CBA estimates that a modest recovery in oil flows through the Strait of Hormuz—enough to bring supply to 50‑60% of pre‑war levels—could push prices toward the lower end of that range, signalling an oversupplied global market.

The price figures presented are a real‑time snapshot and are subject to a delay of at least 15 minutes.