Oil Prices Slip on Iran Sanctions Fears and Strait of Hormuz Tensions

Oil prices fell on Monday as investors took profits after recent gains and awaited details of expected new US sanctions on Iran, which could further disrupt supplies from the Middle East.

The Brent crude futures price slipped $1.16, or 1.23%, to $93.23 at 1131 GMT, while U.S. West Texas Intermediate crude was at $85.51 a barrel, down $1.55, or 1.78%.

This comes after both contracts posted a second consecutive weekly gain last week, rising more than 5%, as peace negotiations between the US and Iran stalled, constraining oil shipments through the Strait of Hormuz, a route that once carried a fifth of global supplies.

Tamas Varga, an analyst at PVM, warned that if the pledged embargo is launched, oil supply from the region will fall. He also predicted that the US would likely tighten its naval blockade against Iranian oil exports and that Iran could retaliate with fresh strikes against oil installations in the Middle East.