US-Iran Tensions Spark Oil Price Drop Amid Threat of New Sanctions

Oil prices dropped over $1 per barrel on Monday as investors took profits before an expected announcement from Washington about imposing new sanctions on Iran.

The U.S. Treasury Secretary, Scott Bessent, is set to hold a press conference at 2 p.m. ET on Monday, where he has threatened to impose 'the toughest sanctions in history' on Iran.

President Donald Trump has also vowed to impose sanctions on Iran's trading partners.

The Brent crude futures fell $1.23, or 1.3 percent, 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 percent.

Vivek Dhar, a commodities analyst at Commonwealth Bank of Australia, warned that if the U.S. measures do work as intended, Iran's ability to respond via increased violence becomes a growing risk for energy markets to consider.