US Treasury Secretary Scott Bessent has issued a stark warning to countries that continue to do business with Iran, as the Trump administration escalates its economic pressure campaign against Tehran. In a press conference, Bessent described the initiative as an “economic D-Day” aimed at isolating Iran and severing its global financial ties.
“We are launching an economic onslaught against Iran’s financial connections around the globe,” Bessent said, calling it “economic asphyxiation of this regime.” The Treasury has already sanctioned more than 60 entities, focusing on five key areas: digital assets, technology, gold, aviation, and shipping. Bessent also hinted that a major financial institution could face sanctions over its Iran ties by the end of the week, though he did not name it.
The move could heighten tensions with China, which remains the largest buyer of Iranian oil and has so far resisted calls to halt such trade. Bessent indicated that countries would be given a timeline to wind down their dealings with Iran before facing unilateral US penalties.
Gold hits three-month high
Gold prices climbed to their highest level in more than three months, rising 1% to $4,652.69 an ounce after touching $4,680.70, the strongest since May 14. US gold futures for December delivery settled 0.51% higher at $4,704.30. The precious metal was supported by a softer dollar and lower Treasury yields, building on last week's 5% gain following the Treasury's announcement of a larger bond buyback program.
Jim Wyckoff, a market analyst at American Gold Exchange, noted that both fundamental and technical factors are supporting gold. He added that the path of least resistance could remain “sideways to higher” in the coming weeks unless a technical reversal emerges. Gold also moved above its 200-day moving average last week, strengthening its momentum. Gold-backed ETFs saw inflows of 46.7 metric tons, worth $6.4 billion, last week—the largest weekly demand in 10 months, according to the World Gold Council.
Oil retreats as Iran sanctions loom
Oil prices fell more than $2 a barrel as traders took profits after two weeks of gains, awaiting details of the expected expansion of US sanctions on Iran. Brent crude futures dropped 2.44% to $92.09, while West Texas Intermediate crude fell 2.3% to $85.06. Both benchmarks had gained more than 5% last week as stalled US-Iran peace negotiations constrained shipments through the Strait of Hormuz, a key route for global energy supplies.
Shipping data showed fewer than 20 commodity vessels transited the strait over the weekend, as Iranian and US blockades restricted traffic. Morgan Stanley analysts raised their Brent forecasts, projecting a peak of $100 a barrel in the fourth quarter. However, SEB analyst Bjarne Schieldrop noted that Brent prices around $93 suggest sufficient oil is still moving through the strait and the Persian Gulf.
Bitcoin retreats after nearing $80,000
Bitcoin traded at $78,740 after approaching the $80,000 mark, raising questions about whether buyers will return after the cryptocurrency's rapid advance. Analysts had warned that profit-taking could emerge after the recent gains. Charles Schwab's Jim Ferraioli noted that $6.4 billion in leveraged short perpetual futures positions had been liquidated since Wednesday. “Ultimately, short squeezes tend to be short lived,” Ferraioli said, adding that the move could help settle the debate over whether the market has reached a bottom.
Bitcoin futures have also moved into backwardation, meaning futures prices are below spot prices. Ferraioli suggested that some hedge funds appearing bullish through net-long futures positions may actually be pursuing basis trades rather than taking a directional view. For more on the broader crypto market, see crypto VC funding trends.
Meanwhile, gold's strength is part of a broader precious metals rally, as seen in gold's recent performance. The geopolitical backdrop, including the Iran conflict, remains a key driver for safe-haven assets, as highlighted by expert warnings on the conflict.
This article is for informational purposes only and does not constitute financial advice.
