Oil Prices Slide as Washington Prepares New Iran Sanctions

Oil prices slipped on Monday ahead of an expected announcement from Washington about imposing new sanctions on Iran that may disrupt oil supplies from the Middle East.

Brent crude futures fell $1.22, or 1.29 per cent, to $93.17 by 0035 GMT, while U.S. West Texas Intermediate crude was at $85.86 a barrel, down $1.20, or 1.38 per cent.

The expected sanctions announcement by U.S. Treasury Secretary Scott Bessent has sent shockwaves through the energy market, with analysts warning of potential increased violence from Iran if the measures are effective.

'The more pragmatic members of the Iranian leadership would prefer to de-escalate but the hardliners would probably prefer to fight to the bitter end,' IG markets analyst Tony Sycamore said.