US expands sanctions against Iran, impacting global oil prices

Oil prices stabilized following a significant drop as investors reacted to the United States' decision to expand secondary sanctions against Iran. U.S. Treasury Secretary Scott Bessent announced the expansion of these measures to isolate the Iranian economy, warning that countries must sever business ties with Tehran or risk exclusion from the dollar-based financial system.

While U.S. Defense Secretary Pete Hegseth stated that military force against Iran remains a possibility, market analysts suggest that the shift toward economic coercion has reduced immediate fears of a physical supply disruption. However, risks remain; an oil tanker was reportedly disabled by an unidentified projectile near Oman’s Ash Shishah on Tuesday.

Market volatility also extended to Asian stocks, with major indices in Tokyo, Shanghai, and South Korea seeing declines. Investors are simultaneously monitoring the technology sector, specifically regarding Nvidia’s earnings and Alibaba’s plans to issue $10.2 billion in new shares to fund artificial intelligence ambitions.