Oil prices fell as investors awaited details of what Washington has billed as its toughest-ever sanctions campaign against Iran.
U.S. Treasury Secretary Scott Bessent is set to unveil a new package of sanctions against Iran later.
West Texas Intermediate futures, the U.S. benchmark, declined about 1.62% to $85.65 per barrel. Brent crude, the international benchmark, lost 1.38% to $93.09 a barrel.
Bessent stated, "At dawn begins an economic D-Day — the single greatest financial offensive ever marshaled against an adversary."
Bessent told CNBC last week that Washington intends to "collapse" the Islamic Republic with the "toughest sanctions in history," as the Trump administration pushes U.S. allies and other countries to cut economic ties with Tehran.
Iran has pushed back against the threats. The Islamic Revolutionary Guard Corps said Tehran has ways "to counter the adverse effects of the enemy's war" and can "easily establish economic relations with countries."
Commonwealth Bank of Australia expects oil prices to remain volatile in the second half of the year as markets weigh whether Washington's push to economically isolate Iran will succeed.
