Oil prices slip as US prepares new economic pressure on Iran

Oil prices dropped on Monday as the market entered a holding pattern ahead of what US officials are billing as a historic sanctions package against Iran. West Texas Intermediate futures fell roughly 1.6% to around $85.65 per barrel, while Brent crude slid about 1.4% to approximately $93.09. The ‘economic D-Day’ playbook Treasury Secretary Scott Bessent is expected to detail the sanctions package on August 24, describing the measures as an “economic D-Day.” President Donald Trump reinforced the message by warning of severe consequences for any country or entity that continues trading oil with Iran. That kind of secondary-sanctions threat is significant because it puts buyers, not just sellers, in the crosshairs. Nations like China, which has historically been Iran’s largest crude customer, now face a direct ultimatum. Iranian officials dismissed the threats and hinted at retaliatory actions against participants in the sanctions regime. A 60-day US waiver on specific Iranian oil sanctions expired on August 21, just three days before this latest escalation. The expiration removed a temporary buffer that had allowed some Iranian crude to continue flowing through international markets. ...