Oil Prices Drop as Investors Await New US Sanctions on Iran

Oil prices dropped on Monday as investors took profits after recent gains and awaited details of expected new US sanctions on Iran, which could further disrupt supplies from the Middle East.

Brent crude futures fell $1.16 per barrel, or 1.23%, to $93.23 at 1131 GMT, while UST West Texas Intermediate crude was down $1.55, or 1.78%, to $85.51 a barrel.

The US Treasury Secretary Scott Bessent is set to hold a press conference at 1 p.m. EDT (1700 GMT) on Monday, where he will announce new sanctions on Iran. President Donald Trump has threatened to impose sanctions on Iran's trading partners.

Analyst Tamas Varga said that if the pledged embargo is launched, oil supply from the region will fall, and the US would likely tighten its naval blockade against Iranian oil exports.