US Sanctions Threaten Iran's Oil Exports, Prices Dip
Oil prices dipped on Monday as investors took profits from recent gains and awaited details of new US sanctions against Iran. The sanctions could further disrupt oil supplies from the Middle East, according to analysts.
The Brent crude futures contract fell by $1.01 per barrel, or 1.1%, to $93.38 at 13:16 GMT. Meanwhile, U.S. West Texas Intermediate crude dropped to $85.64 per barrel, down $1.42, or 1.6%.
US Treasury Secretary Scott Bessent threatened to impose the 'toughest sanctions in history' against Iran, while President Donald Trump vowed to penalize its trading partners. The moves come as peace talks between the US and Iran stalled, limiting oil supplies through the Strait of Hormuz.
PVM analyst Tamas Varga warned that a promised embargo would lead to declining oil supplies from the region. He added that the US might intensify its naval blockade of Iranian oil exports and that Iran could retaliate with new strikes on Middle Eastern oil facilities.