US Treasury Secretary Scott Bessent has issued a forceful warning to countries maintaining business ties with Iran, as the Trump administration intensifies its campaign to isolate Tehran. Bessent stated that the US is launching an “economic D-Day” initiative intended to sever Iran’s global financial connections and pressure other nations into ceasing cooperation with the country.
Bessent details new enforcement measures
Speaking at a press conference, Bessent explained that President Donald Trump is reaching out directly to international leaders, urging them to end their engagement with Iran. Countries will receive specific deadlines to wind down their relations or risk facing stringent US economic penalties.
“We are launching an economic onslaught against Iran’s financial connections around the globe,” Bessent declared, describing the campaign as one of “economic asphyxiation” targeting the Iranian regime’s ability to operate internationally.
Bessent described the measures as “an economic onslaught against Iran’s financial connections around the globe,” labeling the strategy as “economic asphyxiation of this regime.”
The Treasury unveiled sanctions against over 60 entities, focusing on five key sectors seen as critical lifelines for Iran: digital assets, technology, gold, aviation, and shipping. Bessent also signaled that a major financial institution with Iranian ties could face US sanctions by the end of the week, but declined to identify the institution.
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AAPLChina, which is a major purchaser of Iranian oil, is expected to face particular scrutiny as it has thus far resisted US requests to stop business with Iran. Bessent noted that the administration is providing a window for countries to alter their course rather than imposing penalties immediately.
Mini dictionary: Scott Bessent is the US Treasury Secretary, responsible for overseeing the nation’s finances and formulating economic policy, including international sanctions and financial regulations.
Gold jumps as dollar weakens, bond yields fall
Gold prices surged to a more than three-month peak, benefiting from a weaker US dollar and declining Treasury yields. Spot gold climbed 1% to $4,652.69 an ounce after touching $4,680.70, its highest since mid-May. US gold futures for December settled at $4,704.30, up 0.51% on the day.
The precious metal had already advanced over 5% the previous week following the Treasury’s announcement of an increased bond buyback. Analysts at American Gold Exchange suggested that both macroeconomic fundamentals and technical momentum are supporting the rally.
Jim Wyckoff, a market analyst, also indicated the trend may remain “sideways to higher” barring a significant reversal in technical indicators. Gold’s move above its 200-day moving average has reinforced bullish sentiment among traders.
According to the World Gold Council, gold-backed exchange-traded funds attracted 46.7 metric tons in inflows valued at $6.4 billion last week, marking the largest weekly demand in 10 months.
| Asset | Latest Price | Weekly Change | Key Support |
|---|---|---|---|
| Gold (spot) | $4,652.69/oz | +1% | 200-day MA |
| Gold (futures Dec.) | $4,704.30/oz | +0.51% | 200-day MA |
Oil slips after rally, market eyes Iran sanctions
Oil prices fell sharply, giving up more than $2 a barrel as traders took profits after a strong two-week rally. The market is awaiting further details on the upcoming US sanctions targeting Iran’s energy sector.
Brent crude futures dropped 2.44% to $92.09, and West Texas Intermediate declined 2.3% to $85.06. Both benchmarks had risen over 5% last week amid continued tensions over shipments through the Strait of Hormuz, where fewer than 20 vessels reportedly passed during the weekend as blockades continued.
Morgan Stanley analysts raised their Brent forecast and see the possibility of it reaching $100 per barrel in the fourth quarter. In contrast, SEB analyst Bjarne Schieldrop argues that Brent prices near $93 suggest the global oil supply through the vital sea lanes remains steady for now.
Bitcoin pulls back near $80,000, market gauges momentum
Bitcoin traded at $78,740 after briefly approaching $80,000, with the pullback raising new questions about the durability of its recent rally. Analysts suggest profit-taking may be emerging as a natural pause after recent gains.
Jim Ferraioli, a strategist at Charles Schwab, noted that $6.4 billion in leveraged short perpetual futures had been liquidated since Wednesday. He commented that such short squeezes “tend to be short lived,” implying that the current price fluctuation may help clarify if Bitcoin has established a new bottom.
Charles Schwab’s Jim Ferraioli observed that the recent liquidation of $6.4 billion in leveraged short positions could be a temporary phenomenon, potentially settling the ongoing debate over market direction.
Bitcoin futures moved into backwardation, where futures prices now sit below spot levels. Ferraioli also pointed out that certain hedge funds, appearing net-long on futures, could be engaged in basis trading strategies rather than expressing outright bullishness.
Mini dictionary: Backwardation is a situation in futures markets where contracts with nearer expiration dates trade at higher prices than those with later expiries, often reflecting supply-demand imbalances or short-term market stress.
