Oil Prices Plummet as Traders Await Iran Sanctions

Oil prices plummeted by over 1.8% on Monday as traders anxiously awaited the unveiling of new sanctions on Iran, which could further disrupt oil flows from the Middle East.

The US Treasury Secretary, Scott Bessent, has threatened to impose 'the toughest sanctions in history' on Iran, with President Donald Trump warning countries doing business with Tehran that they will face severe financial penalties.

Brent crude, the international benchmark, traded at $93.00 at 8:44 a.m. EDT, down 1.44% from yesterday's close, as traders remained uncertain about the details of the sanctions and their potential impact on global oil supplies.

TotalEnergies CEO Patrick Pouyanne noted that many vessels have turned off their radar transponder systems to avoid being detected and potentially attacked by Iran's Islamic Revolutionary Guard Corps, with freight and insurance costs surging to around $20 million per supertanker for a round trip through the Strait of Hormuz.