This drone shot shows the oil tanker Helga moored at one of Iraq’s offshore oil terminals in southern Iraq near Basra, preparing to load crude oil.This is the second vessel to arrive since the closure of the Strait of Hormuz on April 24, 2026.
Mohamed Ati | Reuters
Oil prices fell on Monday as investors awaited details of what the US government claims is the toughest sanctions campaign against Iran in history, while the Iranian government dismissed threats of escalating economic pressure.
U.S. benchmark West Texas Intermediate futures fell about 1.3% to $85.93 a barrel. Brent crude oil, the international benchmark, fell 1.24% to $93.22 per barrel.
U.S. Treasury Secretary Scott Bessent is expected to announce new sanctions against Iran later on Monday.
“At dawn, Economic D-Day begins – the single largest financial attack ever waged against an adversary,” Bessent wrote in a post on X.
Bessent told CNBC last week that the United States intends to “collapse” the Islamic Republic with “the toughest sanctions in history” as the Trump administration presses U.S. allies and other countries to sever economic ties with Iran.
The announcement follows President Donald Trump’s threat last week to launch “the most devastating economic operation ever waged against any country” against Iran. President Trump also called the effort “economic warfare and isolation on an unprecedented scale” and warned that countries that help Tehran evade sanctions would face hefty fines.
Iran has pushed back against these threats. According to Iranian state media, the Islamic Revolutionary Guards Corps said Iran has ways to “counter the negative effects of enemy wars” and can “easily establish economic relations with countries.”
Commonwealth Bank of Australia expects oil prices to remain volatile in the second half of the year as markets consider whether Washington’s efforts to economically isolate Iran will succeed and how Tehran will respond.
“It is unclear whether U.S. policies to economically isolate Iran will be effective. However, if U.S. measures work as intended, Iran’s ability to respond with increased violence poses a growing risk for energy markets to consider,” CBA said in a note Monday.
CBA also expects Brent crude to trade between $70 and $100 per barrel in the second half of 2026. The bank said any slight recovery in oil flows through the Strait of Hormuz could send prices down toward the bottom of their range, estimating that only 50% to 60% of pre-war volumes would be enough to revive hopes for an oversupplied global market.
—CNBC’s Ashley Capoot contributed to this report.
