US Sanctions on Iran Spark Profit-Taking in Crude Oil Market

Crude oil prices dipped on Monday as investors took profits following recent gains and largely ignored new sanctions on Iran by the US. Brent crude futures declined by $2.22 or 2.35% to $92.17 per barrel, while the US West Texas Intermediate (WTI) crude futures fell by $2.05 or 2.35% to $85.01 per barrel.

The US Treasury Department announced an expansion of secondary sanctions on entities and countries that maintain business ties with Iran. The move is part of the 'economic D-Day' campaign against Iran, targeting nearly 60 individuals, entities, and vessels in the first round of new measures.

Market analysts believe this may impact China, which buys more than 80% of Iran's seaborne oil, but the US stopped short of sanctioning larger Chinese banks that facilitate those purchases. Iranian crude availability in China is already declining under the US blockade, with imports estimated at 534,000 barrels per day in August, down from 823,000 barrels per day in July.