Iran Sanctions Send Oil Prices Reeling

Oil prices fell sharply on Monday as investors took profits and awaited details of new US sanctions on Iran, which could disrupt supplies from the Middle East. The Brent crude futures contract dropped by $1.71 (1.81%) to $92.69 per barrel, while West Texas Intermediate crude fell by $1.72 (1.98%) to $85.34 per barrel.

The recent gains in oil prices were attributed to stalled peace negotiations between the US and Iran, which constrained oil shipments through the Strait of Hormuz. However, with the expected new sanctions, supply from the region could fall, according to PVM analyst Tamas Varga.

Iran has condemned the US plans, and President Masoud Pezeshkian called for a diplomatic solution. Meanwhile, Pakistan's army chief was visiting Tehran on Monday for mediation talks ahead of the US announcement.