Oil Prices Fall as Investors Take Profits Ahead of Iran Sanctions

Oil prices fell on Monday as investors took profits ahead of an expected U.S. announcement on new sanctions against Iran, which could disrupt Middle East supplies.

Brent crude futures dropped $1.23, or 1.3%, to $93.16 a barrel, while U.S. West Texas Intermediate crude was down $1.36, or 1.6%, at $85.70 a barrel, according to Reuters.

The decline in oil prices comes as the U.S. and Iran engage in a standoff over sanctions, with U.S. Treasury Secretary Scott Bessent set to hold a press conference later on Monday to discuss potential measures against Tehran.

Analysts are uncertain about whether the U.S. efforts to economically isolate Iran will succeed, noting that if the measures work as intended, Iran's potential to respond with increased violence becomes a growing risk for energy markets.