Iran Sanctions Loom: Oil Prices Plunge Ahead of US Announcement

Oil prices have dropped over $1 per barrel on Monday ahead of an expected announcement from Washington about imposing new sanctions on Iran.

The US Treasury Secretary, Scott Bessent, is set to hold a press conference at 2pm EDT (1800 GMT) where he will likely announce the toughest sanctions in history on Iran.

Brent crude futures 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%.

Analysts are divided on the effectiveness of the sanctions, with some warning that they may lead to increased violence in the region and disrupt energy markets further.