By Abubakar Yunusa
Oil prices fell by about two per cent on Monday as investors awaited details of a planned United States economic offensive against Iran, while global stock markets also weakened amid continuing uncertainty over the Middle East conflict.
Brent crude was down 1.7 per cent at $92.77 a barrel by 10:15 GMT, while West Texas Intermediate fell 2.4 per cent to $85.01, as traders watched for measures expected to be announced by US Treasury Secretary Scott Bessent.
The decline came after both benchmark crude contracts gained more than seven per cent last week.
Bessent was expected to outline new economic measures against Tehran as the conflict continued, with no agreement yet to reopen the strategically important Strait of Hormuz.
Writing in the Financial Times, Bessent described the planned measures as the “single greatest financial offensive marshalled against an adversary”, calling it an “economic D-Day”.
Susannah Streeter, chief investment strategist at Wealth Club, said the US appeared to be changing its approach to the conflict.
“The US is changing tactics in its battle against Iran, and its fight to get oil flowing more freely from the region,” she said.
Streeter said investors could welcome the shift from military threats to tougher sanctions, but warned that there was little confidence that a peace agreement would be reached soon.
The uncertainty also weighed on global equities.
In Asia, South Korea’s technology-heavy Kospi fell more than three per cent, pressured by a sharp decline in Samsung Electronics shares.
Tokyo and Shanghai markets also closed lower, while Hong Kong’s Hang Seng Index dropped nearly two per cent.
Investors were also awaiting earnings from Nvidia, a major indicator of the strength of the global artificial intelligence sector.
The company’s results are expected to provide fresh signals on whether the AI-driven market rally can continue as the technology expands across industries.
In Hong Kong, fast-fashion retailer Shein announced that its long-awaited market debut would take place on September 1.
The listing is expected to value the company at nearly $27bn.
Alibaba also remained in focus after announcing plans to raise $10.2bn through a new share issue in Hong Kong to support its artificial intelligence ambitions.
European markets were relatively subdued, with London edging higher while Frankfurt and Paris were broadly flat.
Investors are also looking ahead to the annual gathering of central bankers, economists and finance chiefs in Jackson Hole, United States.
The meeting is expected to provide clues on the direction of US monetary policy amid persistent concerns over inflation, borrowing costs and rising government debt.
The US Treasury has said it would buy back some of its bonds in an effort to reduce borrowing costs after the 30-year Treasury yield climbed to levels last seen in 2007.
The development has heightened concerns about debt and inflation across major Western economies.
The United States also reported last week that its federal debt had exceeded $40tn.
On currency markets, the Canadian dollar fell 0.5 per cent against the US dollar, extending its decline over the past month after Ottawa threatened retaliation against new US tariffs.
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