Iran Sanctions Loom, Oil Prices Plunge Ahead of US Announcement
Oil prices fell on Monday as investors took profits ahead of an expected announcement from Washington about imposing more sanctions on Iran. The US Treasury Secretary, Scott Bessent, is set to hold a press conference at 2 pm EDT (1800 GMT) today, where he may announce 'the toughest sanctions in history' on Iran.
The Brent crude futures price fell $1.22, or 1.29%, to $93.17 by 0035 GMT, while US West Texas Intermediate crude was at $85.86 a barrel, down $1.20, or 1.38%. This comes after the two contracts posted their second weekly gains last week, up more than 5%, as peace talks between the US and Iran hit a stalemate.
Iran's ability to export oil has been disrupted by the US blockade, which has led to higher prices for Iranian crude. However, the country has granted permission for Iraqi oil tankers to pass through the Strait of Hormuz following repeated requests from Baghdad.