Oil Prices Slide as Trump Tightens Iran Sanctions; Asian Markets Mixed

International oil prices declined on Monday after US President Donald Trump announced stricter economic sanctions against Iran, while Asian stock markets showed mixed performance in early trading. South Korea’s tech-heavy Kospi index fell around 1%, with markets in Tokyo, Shanghai, Taipei, and Wellington also recording declines, while Sydney, Jakarta, and Bangkok moved higher and Manila and Kuala Lumpur remained largely unchanged. Investor focus is also turning to Nvidia’s upcoming earnings report amid growing concerns over whether the rapid expansion of artificial intelligence can justify the massive investments being made by technology companies. SPI Asset Management’s Stephen Innes noted that while AI investment continues to grow, its costs are also increasing, leaving Nvidia under pressure to demonstrate strong returns from its investments. Meanwhile, Chinese technology giant Alibaba announced plans to raise around US$10.2 billion through a new share offering in Hong Kong to finance its global AI infrastructure and technology expansion. Hong Kong’s stock market fell more than 2% despite fast-fashion retailer Shein announcing plans to list its shares in Hong Kong on September 1, with the listing expected to value the company at around US$27 billion. On the geopolitical front, US Treasury Secretary Scott Bessent is expected to outline further measures to increase economic pressure on Iran, with Washington urging its allies and China to support the campaign. US Vice President JD Vance described the effort as a “delicate dance.” In the energy market, Brent crude fell 2.3% to around US$92 per barrel, while US crude prices declined by a similar margin. Investors are also closely watching the annual Jackson Hole gathering of central bankers, economists, and financial leaders in the US this week for signals on the future direction of US monetary policy. Meanwhile, rising US inflation concerns and mounting government debt have pushed Treasury yields higher, with US federal debt reportedly exceeding US$40 trillion.