US Sanctions Threat Sends Oil Prices Tumbling
Crude oil prices dipped by about 1% on Monday as investors took profits ahead of an expected US announcement on additional sanctions against Iran. The drop in Brent crude futures was $0.94, or 1%, to $93.45 a barrel by 2308 GMT, while West Texas Intermediate fell $0.92, or 1.06%, to $86.14 a barrel.
The decline comes as Treasury Secretary Scott Bessent prepares to hold a press conference at 2 pm Eastern time on Monday, where he has warned that Washington will impose the 'toughest sanctions in history' on Iran.
Traders have been weighing the risk of supply disruptions against the possibility that a sanctions package could already be priced into the market. The immediate market reaction has been to reduce exposure ahead of the formal announcement, rather than hold positions through it.