Oil Prices Plummet as US Prepares to Unveil 'Toughest Sanctions in History'

Oil prices have dropped by over $1 a barrel as investors take profits after recent gains. The decrease comes as the US prepares to unveil new sanctions on Iran, which could further disrupt oil supplies from the Middle East.

The Brent crude futures contract fell by $1.16, or 1.23%, to $93.23 at 1131 GMT, while the US West Texas Intermediate crude contract was down $1.55, or 1.78%, to $85.51 a barrel.

These declines follow a second consecutive weekly gain last week, where both contracts rose by more than 5% as peace negotiations between the US and Iran stalled, constraining oil shipments through the Strait of Hormuz.

U.S. Treasury Secretary Scott Bessent has threatened to impose 'the toughest sanctions in history' on Iran, which would likely tighten the naval blockade against Iranian oil exports and could lead to retaliation from Iran with fresh strikes against oil installations in the Middle East.