Oil Prices Plummet as US Threatens Iran Sanctions
Oil prices have dropped by over $1 per barrel as investors await the US's announcement on new sanctions against Iran. The decline comes after Brent crude declined 1.90% to $92.60 a barrel and WTI crude fell 1.96% to $85.35 per barrel.
The price drop is attributed to the possibility of further disruption to Middle Eastern supplies, particularly through the Strait of Hormuz waterway. The waterway carries a fifth of the world's oil supply, and any potential blockade or disruptions could significantly impact global oil prices.
US Treasury Secretary Scott Bessent has warned of 'the toughest sanctions in history' against Iran, which has rejected the planned measures. President Donald Trump has also threatened measures against countries trading with Tehran.
Bessent is scheduled to hold a press conference at 2 pm EDT (1800 GMT) on Monday to outline the US's plans for imposing economic pressure on Iran.