By Mardiyyah Abubakar
US President Donald Trump has vowed to launch what he described as the “most crushing” financial operation against Iran as Washington prepares new sanctions targeting the country’s trade partners.
Iran, in response, has threatened to halt all oil exports from the Gulf if what it described as an economic war continues.
The escalation comes despite the absence of direct military strikes between the warring sides in recent weeks. The United States and Iran have also yet to hold meaningful talks aimed at ending the six-month-old conflict.
Thousands of people have died since the United States and Israel began strikes on Iran and Lebanon on February 28, further weakening Iran’s conventional military capabilities and putting additional pressure on its economy.
The prospect of tougher US sanctions weighed on markets on Monday, with oil prices falling as investors awaited details of Washington’s plans to isolate the Iranian economy.
Brent crude fell 2.3 per cent to about $92 a barrel, while US West Texas Intermediate also declined.
The United States has urged its allies and China to support Trump’s latest campaign against Iran.
US Vice President JD Vance described the strategy as a “delicate dance”, warning that Iran could attempt to retaliate by applying economic pressure on the United States.
US Treasury Secretary Scott Bessent is expected to provide further details on Monday about Washington’s plans to intensify economic pressure on Tehran.
The development has also raised concerns in global financial markets, with Asian stocks mostly falling in early trading.
Investors are also watching developments in the technology sector, including Nvidia’s upcoming earnings report, while markets await further signals on US monetary policy from the annual Jackson Hole gathering of central bankers and finance officials.
