Oil slips as markets await details of Trump’s ‘most crushing’ Iran sanctions plan

Oil prices fell on Monday as investors awaited details of a US plan to isolate the Iranian economy that President Donald Trump described as the “most crushing” financial operation ever against Tehran, while markets also focused on Nvidia and the outlook for AI spending.

Markets react to US pressure on Iran

The drop in crude came as the United States warned allies and China to join the new campaign. US Vice President JD Vance described the plan as a “delicate dance” because Iran will “try to apply economic pressure to us.”

Scott Bessent, speaking to CNBC, said “many conversations are best to have in private” when asked whether the United States would pressure China, and he called on Beijing “to get with the programme.”

Price moves and benchmarks

Both main crude contracts were reported down 2.3 percent, with the Brent benchmark sitting at $92 a barrel. Later figures in the report showed West Texas Intermediate at $85.39 per barrel and Brent North Sea crude at $92.68 per barrel.

Tech and AI weigh on investor sentiment

Investors also turned their attention to the technology sector, particularly around artificial intelligence spending. Nvidia, the world’s most valuable company, was highlighted as a key upcoming earnings report and a bellwether for the sector.

Stephen Innes of SPI Asset Management warned:

“The spending machine is still running, but the bill is getting heavier. Nvidia must now show that the most expensive investment boom in modern market history can still pay its bills.”

Regional market movements and corporate moves

Asian stocks were mostly down in early trading. South Korea’s Kospi fell 1.4 percent after Samsung Electronics said it spent $80 billion to buy back its own shares. Hong Kong’s Hang Seng was down more than 2 percent, even as fast-fashion group Shein announced a market debut in Hong Kong on September 1. Other regional moves included declines in Tokyo, Shanghai, Taipei and Wellington, while Sydney, Jakarta and Bangkok posted gains.

Chinese tech giant Alibaba announced plans to issue $10.2 billion in new shares in Hong Kong to fund its global AI ambitions.

Other market watchpoints

Traders were also watching for remarks from US Treasury boss Scott Bessent, who said he would give more details in a news conference on Monday on the fresh push to pile economic pressure on Iran. Attention was expected on this week’s annual gathering of central bankers and economists in Jackson Hole for signals on US monetary policy.

Key market figures reported

• Brent benchmark: $92 a barrel (earlier figure)
• West Texas Intermediate: $85.39 per barrel
• Brent North Sea Crude: $92.68 per barrel
• South Korea Kospi: down 1.4 percent
• Hong Kong Hang Seng Index: down 2.1 percent at 25,455.95

Markets remained sensitive to developments in the Middle East and to how major tech firms and chipmakers will translate AI investment into sustained profits.