US Sanctions Send Oil Prices Plummeting Amid Middle East Tensions
Oil prices plummeted more than $1 per barrel on Monday as investors booked profits ahead of a US announcement on new sanctions against Iran. The decline came after both Brent crude and WTI crude gained more than 5% last week, marking their second consecutive weekly rises.
The latest focus is on Washington's planned sanctions, with US Treasury Secretary Scott Bessent scheduled to hold a press conference at 2 pm EDT (1800 GMT) on Monday. He has warned of 'the toughest sanctions in history' against Iran, while President Donald Trump has threatened measures against countries trading with Tehran.
The Strait of Hormuz shipping risks remain a major concern for energy markets. Trade sources cited by Reuters said that offers of Iranian crude to Chinese buyers had fallen and prices had risen after a US blockade reduced Tehran's shipments. Meanwhile, Iran allowed several Iraqi oil tankers to travel through the Strait of Hormuz after repeated requests from Baghdad.
Iran has rejected the planned sanctions, while President Masoud Pezeshkian has called for a diplomatic resolution. The country's ability to disrupt energy supplies remains a major concern, with its retained missile and drone capability threatening Gulf neighbours and oil tankers in the Strait of Hormuz.