Middle East war: US threatens Iran of ‘economic D-Day’
Brent crude’s price rally has continued this week, after the US administration threatened of a new and hardline sanctions package against Iran.
IMAGE: Flags of the US and Iran. Getty Images
The ongoing tensions between Washington and Tehran – paired with a near-halt in tanker traffic through the Strait of Hormuz – have rattled the global oil market with supply concerns.
US treasury secretary Scott Bessent will hold a press conference at 18.00 GMT today, to announce sweeping economic measures against Iran, according to a Financial Times report.
Bessent has described the move as an “economic D-Day” for Tehran – putting upward pressure on Brent crude’s price.
The sanctions package will target countries and entities that are involved in direct business with Tehran – including buying and transporting its crude oil and other petroleum products.
Iran’s head of Supreme National Security Council Mohsen Rezaei has responded to the announcement, warning countries joining this economic campaign against Tehran will be considered an “act of war.”
“There is growing concern that any measures could target not only Iran but also countries that continue trading with the Islamic Republic,” ANZ Bank’s senior commodity strategist Daniel Hynes said.
For now, all eyes are on Bessent's upcoming announcement, with traders watching closely to gauge the real impact on Iranian exports and the risk of further retaliation from Tehran.
Hormuz traffic edges up, still far below pre-war levels
While the past 48 hours have seen no confirmed vessel attacks in the Strait of Hormuz, the quiet period is likely tied to the sharp drop in tanker traffic, which remains far below pre-war averages of 140 daily transits.
The movement of commercial ships in the region remained suppressed, with only 16 crossings recorded yesterday, according to market intelligence reporter Windward. Six tankers went into the waterway, according to the data, and 10 exited it.
As of Sunday, the US Central Command (CENTCOM) said it had redirected 70 commercial vessels, disabled three, and boarded two to prevent ships from entering or departing Iranian ports.
In a parallel push to assert control over the critical waterway, Tehran's Persian Gulf Strait Authority issued warnings of penalties against ships it accused of flouting transit protocols, state-owned media agency IRNA reported.
A total of 89 vessels exited the Strait, while 103 entered the waterway, in the week to 21 August, Reuters reported citing data from the United Kingdom Maritime Trade Operations (UKMTO) agency.
“What is clear is that confidence in a near-term agreement to reopen the Strait of Hormuz remains low,” Hynes said.
By Aparupa Mazumder
Please get in touch with comments or additional info to news@engine.online
