Oil Prices Plummet Ahead of US Iran Sanctions Announcement
Oil prices took a hit on Monday as investors locked in profits ahead of an expected announcement from Washington about new sanctions on Iran.
The US Treasury Secretary Scott Bessent has threatened to impose 'the toughest sanctions in history' on Iran, prompting Brent crude futures to fall by $1.22, or 1.29%, to $93.17 per barrel.
US West Texas Intermediate crude also took a hit, dropping by $1.20, or 1.38%, to $85.86 per barrel.
The sanctions are expected to further disrupt oil supplies from the Middle East, which has already been impacted by peace talks between the US and Iran hitting a stalemate.
Vivek Dhar, a commodities analyst at Commonwealth Bank of Australia, noted that 'it is unclear whether US policy to economically isolate Iran will prove effective,' but warned that if it does, Iran's ability to respond via increased violence becomes a growing risk for energy markets.