Oil Prices Slide as Investors Await Details of New US Pressure Campaign on Iran

Oil prices fell on Monday as investors awaited further details of a US plan to isolate Iran’s economy, which President Donald Trump has described as the “most crushing” financial operation ever against Tehran. Both major crude benchmarks declined by around 2.3 percent, with Brent crude trading near $92 per barrel. US Treasury Secretary Scott Bessent is expected to provide more details on Monday about Washington’s latest effort to intensify economic pressure on Iran. The United States has urged its allies and China to support the campaign as the conflict in the Middle East approaches its six-month mark. US Vice President JD Vance described the initiative as a “delicate dance,” acknowledging that Iran could attempt to exert economic pressure on the United States in response. Bessent also urged Beijing to support the US effort, while noting that some discussions would be better conducted privately. Asian stock markets were mostly lower in early trading amid concerns over technology stocks and broader market volatility. South Korea’s Kospi index fell 1.4 percent after Samsung Electronics disclosed that it had spent around $80 billion on share buybacks following weeks of volatile trading. Shares of Samsung Electronics and rival chipmaker SK hynix had reached highs in June on optimism surrounding the artificial intelligence boom but have since declined amid growing investor concerns and a broader sell-off in technology stocks. Hong Kong’s market also fell more than 2 percent, despite fast-fashion company Shein announcing that it plans to make its market debut in the city on September 1. The long-awaited listing is expected to value the company at approximately $27 billion. Tokyo, Shanghai, Taipei and Wellington also recorded losses, while Sydney, Jakarta and Bangkok advanced. Manila and Kuala Lumpur were largely unchanged. Investors are also closely watching this week’s earnings report from Nvidia, the world’s most valuable company and a key indicator of the health of the artificial intelligence sector. The central question for investors is whether the AI investment boom can maintain its momentum as the technology becomes increasingly integrated into the wider economy. “The spending machine is still running, but the bill is getting heavier,” said Stephen Innes of SPI Asset Management, noting that Nvidia now faces pressure to demonstrate that the massive investment in AI can continue to generate sufficient returns. Chinese technology giant Alibaba is also drawing attention after announcing plans on Sunday to raise approximately $10.2 billion through a new share issue in Hong Kong to finance its global AI ambitions. The company, known for its open-source Qwen AI models, has invested tens of billions of dollars in artificial intelligence, with investors closely watching how it plans to monetize those investments. Investors will also be watching this week’s annual gathering of central bankers, economists and finance officials in Jackson Hole, Wyoming, for further signals on the outlook for US monetary policy. The meeting comes after the US Treasury purchased its own bonds last week in an effort to reduce borrowing costs, following a surge in the 30-year Treasury yield to levels not seen since 2007. Rising yields have been driven partly by inflation concerns and growing worries over US government borrowing, with the country’s federal debt recently surpassing $40 trillion.