Crude prices retreat after six sessions of gains as traders lock in profits and U.S. Iran sanctions underdeliver on severity.
Crude oil futures dropped more than $2 per barrel Monday as investors took profits following a six-session rally. The decline accelerated after the U.S. Treasury unveiled sanctions on Iran that markets judged less restrictive than anticipated.
Prices had climbed nearly 8% over the prior week on escalating Middle East tensions and supply concerns. Analysts had expected the new sanctions package to include broader restrictions on Iranian oil exports, but the measures largely mirrored previously telegraphed actions.
Traders shifted focus to upcoming inventory data and OPEC+ production policy, with no immediate market reaction to the sanctions announcement reported.