Oil Prices Plummet Ahead of Expected US Sanctions on Iran
Oil prices plummeted more than $1 a barrel on Monday as investors locked in profits ahead of an expected US announcement on new Iran sanctions. The move may further disrupt oil supplies from West Asia, already strained due to stalled peace talks between the US and Iran.
Brent crude futures slipped by 1.29% to $93.17 per barrel, while US West Texas Intermediate crude fell 1.38% to $85.86 a barrel. These losses come on the heels of last week's gains, which saw both contracts increase by over 5% as tensions between the two nations escalated.
US Treasury Secretary Scott Bessent is set to hold a press conference at 2 p.m. EDT (1800 GMT) on Monday, where he will reportedly announce 'the toughest sanctions in history' on Iran. President Donald Trump has also threatened to impose sanctions on Tehran's trading partners.
Iranian leaders have expressed skepticism about the effectiveness of US economic isolation policies, with some preferring a diplomatic solution over increased violence. Trade sources indicate that Iranian crude offers to Chinese buyers have declined, and prices have jumped due to the US blockade's impact on Tehran's shipments.