Oil Prices Plummet on Anticipated US Sanctions on Iran

Oil prices fell on Monday as investors anticipated new US sanctions on Iran that could disrupt global supplies.

The Brent crude futures price dropped by $1.23, or 1.3%, to $93.16 per barrel, while the West Texas Intermediate (WTI) price declined by $1.36, or 1.6%, to $85.7 a barrel.

The decline in oil prices comes as the US prepares to unveil new sanctions on Iran, which could further reduce shipments from the Middle East. According to Vivek Dhar, a commodities analyst at Commonwealth Bank of Australia, it is unclear whether these measures will be effective in isolating Iran economically.

In contrast, some analysts believe that the US measures may work as intended and lead to increased violence from Iran, posing a risk to energy markets. Tony Sycamore, an IG Markets analyst, suggests that by the end of this week, it will become clear which side of the Iranian leadership has the upper hand.