Oil Prices Take a Hit as US-Iran Sanctions Loom

Crude oil prices took a hit on Monday, falling more than 1% ahead of an expected announcement from Washington regarding fresh sanctions on Iran. The US-Iran conflict continues to weigh heavily on global markets.

The Brent crude futures declined $1.22, or 1.29%, to $93.17 a barrel, while the US West Texas Intermediate (WTI) crude dropped $1.20, or 1.38%, to $85.86 per barrel. This decline comes after both benchmarks recorded their second consecutive weekly gains last week, rising over 5%.

The impasse between the US and Iran has limited oil shipments through the Strait of Hormuz, a key route that previously carried around one-fifth of the world's oil supply. The potential for additional sanctions against Iran could further disrupt crude supplies from the Middle East.