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US readies new Iran sanctions as US-Canada tariff talks stall
The US plans to announce sanctions targeting Iran’s trade partners, while Canada moves with dollar-for-dollar retaliatory tariffs set to take effect on 8 September.
In geopolitics, tensions between the US and Iran are in focus as Washington prepares to announce new sanctions that target Iran’s trade partners, with US Treasury Secretary Scott Bessent holding a press conference described as an “Economic D-Day.” The measures come as Iran warns that no oil would flow from the Gulf if the economic war continues, and the lack of meaningful negotiations keeps deal prospects slim in the short term. While direct military strikes have eased in recent weeks, investors have been watching the sanctions outlook closely. In commodities, Brent crude fell to around $93 per barrel after a sharp weekly rally, with the drop linked to investors taking profits ahead of the expected US announcement on tougher Iran-related sanctions.
Meanwhile, trade tensions with Canada are also escalating. Canada’s Prime Minister Mark Carney announced dollar-for-dollar retaliatory tariffs on selected US imports after US-Canada trade talks collapsed, with the new measures scheduled to take effect on 8 September and aimed at responding to new 50% US duties on selected exports from Canada worth about $20 billion.
On the macroeconomic front, the market backdrop includes mixed PMI signals. In the US, the composite PMI pointed to the fastest pace of growth since March 2022, with manufacturing easing to 53.2 from 53.9 and services business activity rising to 56.8 from 54.6, while the euro area saw August PMIs come in stronger, leaving the composite index at 52.1.
Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%