Bessent's sweeping sanctions against Iran send oil prices to their biggest drop in 3 weeks, while fueling hopes of de-escalation

By Victor Reklaitis and Isabel Wang

What also matters for oil is if upcoming new U.S. secondary sanctions at some point hit China -Iran's biggest oil buyer

Treasury Secretary Scott Bessent on Monday announced a new round of financial actions aimed at Iran, describing the move as "an economic D-Day."

Global oil prices finished lower on Monday, snapping a six-day win streak but still holding above the $90-a-barrel mark, as traders assessed a pledge from Treasury Secretary Scott Bessent that the U.S. will crack down in new ways on countries that continue to do business with Iran.

Bessent's announcement of the launch of "Operation Economic Outcast," which he also billed as "an economic D-Day" for the Middle Eastern country, featured new sanctions for about 60 Iran-linked entities, but he also said the U.S. is giving other countries time to shut down their interactions with Iran's regime. He defended the Trump administration's decision to not yet impose secondary sanctions on Monday.