U.S. Sanctions on Iran Send Oil Prices Tumbling Over $1
Oil prices plummeted over $1 per barrel on Monday as investors took profits ahead of expected tougher U.S. sanctions on Iran, sparking concerns about potential Middle East supply disruptions.
The price drop saw Brent crude futures fall by $1.23 (1.3%) to $93.16 by 0329 GMT, while U.S. West Texas Intermediate crude fell by $1.36 (1.6%) to $85.7 a barrel.
U.S. Treasury Secretary Scott Bessent is set to hold a press conference at 2 p.m. EDT (1800 GMT) on Monday, during which he may announce the imposition of 'the toughest sanctions in history' on Iran, as threatened by President Donald Trump.
Vivek Dhar, a commodities analyst at Commonwealth Bank of Australia, noted that it is unclear whether U.S. policy to economically isolate Iran will be effective, but if successful, Iran's ability to respond via increased violence becomes a growing risk for energy markets.