Oil Prices Fall as Trump Pledges New Economic Offensive Against Iran

• Global oil prices declined as markets awaited details of a new US campaign aimed at further isolating Iran’s economy.
• Brent crude traded near $92 a barrel, while West Texas Intermediate fell to around $85.
• Asian markets were mostly lower, with technology shares under pressure ahead of Nvidia’s closely watched earnings.
• Investors are also focused on the Jackson Hole gathering for signals about the direction of US monetary policy.

Oil prices fell on Monday as investors awaited details of a new US economic campaign against Iran, which President Donald Trump has described as Washington’s toughest financial offensive yet against Tehran.

Both major crude benchmarks came under selling pressure as traders assessed the potential consequences of additional sanctions on Iran and the wider impact of tensions in the Middle East on global energy supplies.

West Texas Intermediate crude was down 1.9% at $85.39 per barrel at around 0215 GMT, while Brent North Sea crude declined 1.8% to $92.68. Earlier in the session, both contracts had fallen by around 2.3%.

Attention is now focused on US Treasury Secretary Scott Bessent, who is expected to provide further details of Washington’s new strategy at a press conference on Monday.

The United States has also called on its allies and China to support the campaign as the Middle East conflict approaches the six-month mark. US Vice President JD Vance acknowledged that the strategy involves a difficult balancing act because Iran could attempt to retaliate through economic pressure.

Asked about possible US pressure on China, Bessent said some discussions were better conducted privately but urged Beijing to cooperate with Washington’s strategy.

Oil was not the only market facing pressure on Monday, with most major Asian stock markets also trading lower.

South Korea’s technology-heavy Kospi dropped 1.4% after Samsung Electronics announced that it had spent $80 billion buying back its own shares following several weeks of volatile trading.

Shares of Samsung and rival chipmaker SK hynix had reached peaks in June amid enthusiasm surrounding artificial intelligence. Both have since faced pressure as investor concerns about technology valuations contributed to a wider sell-off across the sector.

Markets are now looking towards Nvidia’s upcoming earnings report for fresh evidence about the strength of the global AI investment boom. As the world’s most valuable company and one of the most closely watched businesses in artificial intelligence, Nvidia’s results are expected to provide an important indication of whether enormous spending on AI infrastructure continues to generate sufficient returns.

SPI Asset Management’s Stephen Innes said investment in artificial intelligence remained strong, but the growing cost of the expansion was becoming increasingly important for investors. Nvidia, he said, would need to demonstrate that the unprecedented investment boom surrounding the technology could continue to justify its cost.

Chinese technology giant Alibaba has also kept attention firmly on AI after announcing plans to issue $10.2 billion worth of new shares in Hong Kong to finance its international artificial intelligence ambitions.

Alibaba, known for its open-source Qwen AI models, has committed tens of billions of dollars to artificial intelligence. Investors are increasingly watching for signs of how the company intends to turn that massive investment into sustainable revenue and profits.

Across Asian markets, Tokyo, Shanghai, Taipei and Wellington moved lower on Monday, while Sydney, Jakarta and Bangkok recorded gains. Manila and Kuala Lumpur were broadly unchanged.

Hong Kong’s Hang Seng Index fell more than 2%, despite fast-fashion giant Shein announcing that its long-awaited market debut in the financial hub would take place on September 1.

The planned listing is expected to value Shein, which has built a global business around an enormous range of low-priced fashion and consumer products, at close to $27 billion.

Investors are also preparing for the annual gathering of central bankers, economists and finance officials in Jackson Hole in the United States, where markets will be looking for clearer signals on the future direction of US monetary policy.

The meeting follows renewed concerns about US government borrowing costs. The Treasury bought back some of its own bonds last week in an effort to ease pressure after the yield on 30-year government debt climbed to levels last seen in 2007, shortly before the global financial crisis.

Bond yields have been pushed higher by concerns over inflation and the growing US debt burden, with federal debt having surpassed $40 trillion.

In currency markets, the dollar weakened slightly to 158.82 yen from 159.03 yen on Friday. The euro edged higher to $1.1684, while sterling strengthened to $1.3651. The euro was also slightly higher against the pound at 85.59 pence.

At around 0215 GMT, Japan’s Nikkei 225 was down 0.3% at 65,799.25, Hong Kong’s Hang Seng Index had fallen 2.1% to 25,455.95, and the Shanghai Composite was 0.5% lower at 3,887.81.

With Washington preparing to unveil further economic measures against Iran, technology companies facing renewed scrutiny over massive AI spending and central bankers gathering in Jackson Hole, global markets are entering a closely watched week dominated by geopolitical, monetary and technology-sector developments.