Oil Prices Plummet Ahead of Potential US Sanctions on Iran

Oil prices took a hit on Monday, falling over $1 per barrel ahead of an expected US announcement on new sanctions against Iran. The move could further disrupt oil supplies from the Middle East.

Brent crude futures dropped 1.29% to $93.17 per barrel, while US West Texas Intermediate crude fell 1.38% to $85.86 a barrel.

The expected sanctions come as tensions between the US and Iran remain high. US Treasury Secretary Scott Bessent is set to hold a press conference at 2pm EDT on Monday to discuss the new measures, which have been described as 'the toughest in history' by President Donald Trump.

However, analysts are divided on the effectiveness of these sanctions. Vivek Dhar from Commonwealth Bank of Australia notes that it's unclear whether the US policy will economically isolate Iran, but warns that if it does work, the risk of increased violence and supply disruptions grows.