Oil Prices Drop as U.S. Sanctions on Iran Loom

On Monday, oil prices decreased by more than one dollar as investors took profits and awaited new U.S. sanctions on Iran. Brent crude futures fell by $1.16, or 1.23 percent, to $93.23 a barrel, while U.S.

West Texas Intermediate crude declined by $1.55, or 1.78 percent, to $85.51 a barrel. Both contracts had previously recorded a second consecutive weekly gain of over five percent.

The decline followed stalled U.S.-Iran peace negotiations affecting oil shipments through the Strait of Hormuz, a crucial route for global oil supplies. U.S.

Treasury Secretary Scott Bessent is set to announce new sanctions against Iran, which he described as “the toughest sanctions in history.” President Donald Trump has also threatened sanctions against countries trading with Iran. Analysts noted that an embargo could tighten regional oil supplies and provoke Iranian retaliation against oil installations.

Current Brent prices suggest sufficient oil flow through the Strait of Hormuz, although a complete closure by Iran could significantly impact the market.