US Sanctions Threaten Oil Prices Amid Iran Conflict

Oil prices dropped by over $1 per barrel on Monday as investors anticipated new US sanctions against Iran. The move comes ahead of Washington's expected announcement, which could further disrupt oil supplies from the Middle East.

Brent crude futures fell 1.6% to $92.90 a barrel, while US West Texas Intermediate crude declined by 2% to $85.32.

The slump in prices follows two consecutive weekly gains for both contracts, which rose over 5% last week as US-Iran peace talks reached an impasse, restricting oil shipments through the Strait of Hormuz.

US Treasury Secretary Scott Bessent has threatened to impose 'the toughest sanctions in history' on Iran, while President Donald Trump has warned of sanctions against Tehran's trading partners.