Oil slides below $85 as US expands Iran sanctions

Crude oil extended losses to trade below $85 a barrel on Monday after US Treasury Secretary Scott Bessent announced plans to isolate Iran through sanctions targeting entities and individuals doing business with the country.

While the sanctions are broad, investors are focused on their potential impact on Iran’s oil exports and whether they could accelerate or delay a resolution to the US-Iran conflict.

Bessent warned that at least one major financial institution could be sanctioned this week and suggested China would not be exempt.

Iran has previously demonstrated its ability to circumvent sanctions and has warned countries against supporting Washington’s efforts.

Meanwhile, oil continues to flow through the Strait of Hormuz, with shipments remaining relatively strong despite elevated geopolitical risks.

Reports indicated that around 16 million barrels crossed the waterway in a single night last week, although flows can vary significantly.