Iran has vowed to halt all oil exports from the Persian Gulf if Washington's economic pressure continues, as U.S. Treasury Secretary Scott Bessent prepared to unveil new sanctions. Pakistan's army chief traveled to Tehran to mediate as oil prices slipped more than $1 a barrel and the dollar hovered near three-month lows.
Iran dismissed the U.S. threat on Monday and warned it would shut down all oil exports from the Gulf "if the economic war continues," issuing a fresh warning to shipping not to pass through the Strait of Hormuz without its permission. Mohsen Rezaei, secretary of Iran's Supreme National Security Council, wrote on social media that "not a single drop of oil will be exported" if the standoff escalates further.
Bessent has promised to detail severe new measures at a press conference at 1 p.m. EDT (1700 GMT) on Monday, calling it an economic "D-Day" against Tehran. Pakistan's army chief Asim Munir arrived in Iran on a mediating mission the same day, and Tehran said Oman's foreign minister would visit on Tuesday to discuss the Strait of Hormuz.
Oil slips, dollar stays pinned near lows
Oil prices slipped more than a dollar a barrel on Monday as investors took profits ahead of the expected U.S. announcement. Brent crude futures dipped slightly to $93.05 a barrel on the same pre-announcement caution, while the U.S. dollar lingered near three-month lows as currency desks weighed the looming sanctions alongside other pressures. The threat of secondary sanctions on any nation trading with Tehran has fed fears of supply bottlenecks, and persistent risk around the Strait of Hormuz continues to keep inflation-sensitive currencies on edge.
China's foreign ministry said sanctions and pressure tactics do not help resolve issues and that Beijing would do what was necessary to protect its interests. Bessent has previously urged China to cooperate, noting the country has historically received half of its oil imports from the Gulf region.
Iran defiant but under strain
Deputy Foreign Minister Kazem Gharibabadi dismissed the latest U.S. moves, saying Washington has been promising Iran's end for 48 years, each time under a new name. Yet Iranian officials who spoke to Reuters have expressed concern that further economic punishment could deepen hardship and erode the government's legitimacy.
Tehran entered the six-month conflict with high inflation, a weakening currency and energy shortages, and it must now contend with damaged infrastructure and disrupted trade on top of the new sanctions threat.
Sources: Commodities & Futures News, Forex News
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