[Oil Prices] Crude Plunges More Than 2% Despite New Sanctions on Iran... 'Sold the News'

[Financial News]  

Global oil prices plunged more than 2% on the 24th (local time).
Prices fell sharply after Scott Bessent, the United States Secretary of the Treasury, announced an economic blockade against Iran, which he called Operation Economic Outcast.
Brent Crude Oil for October delivery, the global benchmark, closed at $92.17 per barrel, down $2.22, or 2.35%, from the previous session.
WTI for October delivery, the U.S. benchmark, also slid $2.05, or 2.36%, to $85.01 per barrel.
It was the first decline in seven trading days, since the 13th.
Tighter sanctions on Iran usually push oil prices higher because they raise concerns about reduced crude supply. But since the market had already priced in the bad news and rallied last week, the U.S. announcement on this day triggered selling. Investors appeared to be taking a 'sell the news' approach, using the recent gains as a chance to lock in profits.
Markets also focused on the fact that Bessent announced strong sanctions but did not specify when they would take effect.
Some observers said that higher oil prices resulting from tougher sanctions could become a burden ahead of the Midterm election in November. As a result, expectations are growing that President of the United States Donald Trump may slow the pace of sanctions.

[email protected] Song Kyung-jae Reporter