Oil Prices Plummet Ahead of Iran Sanctions Announcement
Oil prices slipped by over $1 a barrel on Monday as investors took profits ahead of an expected announcement from Washington about imposing new sanctions on Iran that may further disrupt oil supplies from the Middle East.
The Brent crude futures fell $1.49, or 1.6%, to $92.90 early in the morning, while US West Texas Intermediate crude was at $85.32 a barrel, down $1.74, or 2%. This comes after oil prices posted their second consecutive weekly gains last week, up more than 5%.
US Treasury Secretary Scott Bessent is set to hold a press conference later in the evening, where he will likely announce 'the toughest sanctions in history' on Iran. President Donald Trump has also threatened to impose sanctions on Iran's trading partners.
Iran has condemned US plans to announce new sanctions even as President Masoud Pezeshkian called for a diplomatic solution. Some analysts expect the recovery in supplies from the Middle East to take longer than anticipated due to the ongoing conflict between the US and Iran.