Oil Prices Slump Ahead of Expected US Iran Sanctions Announcement

Oil prices have fallen by over $1 per barrel ahead of an expected US announcement on new Iran sanctions, which could disrupt supplies from the region.

Brent crude futures fell to $93.17 by 0035 GMT, down 1.29%, while US West Texas Intermediate crude was at $85.86 a barrel, down 1.38%.

The price drop comes after two consecutive weeks of gains for both contracts, which rose more than 5% as peace talks between the US and Iran hit a stalemate.

Vivek Dhar, commodities analyst at Commonwealth Bank of Australia, notes that it's unclear whether US policy to economically isolate Iran will prove effective, but warns of a growing risk of increased violence in response to sanctions.