Oil Prices Drop Ahead of Iran Sanctions Announcement

Global oil prices fell on Monday ahead of the announcement by US Treasury Secretary Scott Bessent of the toughest set of Iran sanctions yet. The futures contract for Brent crude, the international benchmark, dropped by around 1.4% to $93.09 a barrel, while the contract for West Texas Intermediate, the American benchmark, retreated by a little over 1.6% to $85.65 a barrel.

Bessent described the sanctions as the 'single greatest financial offensive ever marshaled against an adversary,' and warned that any country or entity assisting Tehran in evading the sanctions would face severe consequences.

The Islamic Revolutionary Guard Corps countered by claiming it could easily establish economic relations with alternate countries and counter the effects of the sanctions. The Commonwealth Bank of Australia told CNBC that oil prices would remain volatile through the end of the year, predicting a trading range of $70 to $100 per barrel for Brent.