Oil Prices Plummet Ahead of Expected US Sanctions on Iran

Oil prices plummeted on Monday as investors took profits ahead of expected US sanctions on Iran that may disrupt oil supplies from the Middle East. Brent crude futures fell $1.23, or 1.3%, to $93.16 per barrel by 0329 GMT, while U.S. West Texas Intermediate crude dropped $1.36, or 1.6%, to $85.7 a barrel.

The US Treasury Secretary Scott Bessent is set to hold a press conference at 2 p.m. EDT (1800 GMT) on Monday, where he may announce the toughest sanctions in history on Iran. President Donald Trump has also threatened to impose sanctions on Iran's trading partners.

Vivek Dhar, a commodities analyst at Commonwealth Bank of Australia, warned that it is unclear whether US policy to economically isolate Iran will be effective. However, if the measures do work as intended, Iran's ability to respond via increased violence becomes a growing risk for energy markets.

Iran has condemned the new sanctions, with President Masoud Pezeshkian calling for a diplomatic solution. Tony Sycamore, an IG markets analyst, said that some members of the Iranian leadership prefer to de-escalate, but hardliners may fight to the bitter end.