US-Iran Sanctions Loom, Oil Prices Plummet Ahead of Crucial Announcement

Oil prices dropped on Monday as investors took profits ahead of an expected announcement from Washington about imposing more sanctions on Iran that may further disrupt supplies from the Middle East.

Brent crude futures fell $1.23, or 1.3%, to $93.16 by 0329 GMT, while U.S. West Texas Intermediate crude was at $85.7 a barrel, down $1.36, or 1.6%.

U.S. Treasury Secretary Scott Bessent is set to hold a press conference at 2 p.m. EDT (1800 GMT) on Monday, where he has threatened to impose 'the toughest sanctions in history' on Iran. President Donald Trump has also threatened to impose sanctions on Iran's trading partners.

While some analysts believe that the U.S. measures may work as intended and isolate Iran economically, others warn that this could lead to increased violence and disrupt energy markets further.