The move comes during a six-month conflict between the United States and Iran, with energy markets closely following developments around oil supplies, shipping routes and possible disruptions in the Middle East. According to The New York Times, Bessent said the measures would target Iran’s “enablers” that purchase and transport its petroleum, a reference that appeared to include China, the main buyer of Iranian crude in recent years.
Oil Markets React as Investors Await New U.S. Measures
Brent crude, the global oil benchmark, fell 1.8 percent on Monday to about $93 a barrel. West Texas Intermediate crude, the U.S. benchmark, declined 2.3 percent to around $85 a barrel. Despite the daily decline, crude prices remained higher than before the start of the conflict, with Brent having gained nearly 30 percent since the war began.
The expected announcement from Washington created uncertainty for energy markets as investors assessed the possible impact on Iranian oil exports and regional trade routes. Bessent did not specify the measures that would be introduced, but he said in an opinion essay in the Financial Times that the conflict was “entering the endgame.”
Iran has warned that it could target the interests of neighboring countries if they joined U.S. efforts against its economy. The comments added pressure to a market already focused on the security of shipping routes used to transport oil and natural gas.
Gasoline prices in the United States also continued to reflect the effects of the conflict. According to AAA, the national average price for gasoline rose slightly on Monday to $4.10 a gallon. The average cost for drivers has increased by 38 percent since the war began, while diesel prices reached $5.61 a gallon, up 49 percent over the same period.
Shipping Activity Remains a Focus in Key Middle East Waterways
Investors and analysts have continued to monitor traffic through the Strait of Hormuz, a narrow waterway between Iran and Oman that is a major route for global energy shipments. Another area of attention has been the Bab al-Mandab Strait at the southern end of the Red Sea, where Iranian-backed Houthi forces have restricted traffic over the past month.
According to maritime data firm Kpler, 30 ships passed through the Strait of Hormuz over the weekend, while 83 ships crossed the Bab al-Mandab Strait. The number of passages through both waterways remained close to recent five-day averages. Before the conflict, about 130 ships on average transited the Strait of Hormuz each day.
A tanker was struck in the Red Sea on Monday, according to the United Kingdom Maritime Trade Operations agency. The vessel was located west of Yanbu, Saudi Arabia, and no injuries were reported. The International Maritime Organization said 68 ships had been attacked in the Middle East since the beginning of the war.
Financial markets also responded to shifting concerns over inflation, government debt and borrowing. U.S. Treasury yields declined in early trading, with the 30-year Treasury yield falling to 5.25 percent and the 10-year Treasury yield dropping to 4.71 percent. According to The New York Times, Treasury Secretary Bessent recently increased the amount of government debt the Treasury Department could buy back from investors, raising weekly operations from $2 billion to $4 billion, though yields later returned close to previous levels.
Stock markets showed limited movement as investors evaluated developments in energy markets and technology spending. Futures linked to the S&P 500 indicated a modest decline, while European shares moved between small gains and losses. Asian markets also declined, with South Korea’s KOSPI falling more than 3 percent amid concerns over technology companies’ spending on artificial intelligence systems.
The coming U.S. announcement is expected to provide more details on Washington’s next steps toward Iran’s economy. For energy markets, attention remains focused on how any new measures could affect oil flows, shipping activity and regional stability.
