Brent and WTI crude futures fall ahead of U.S. sanctions expected to tighten Iran’s oil exports and disrupt Middle East supplies.
Oil prices declined more than $1 a barrel on Monday as investors locked in profits after a two-week rally and awaited details of new U.S. sanctions on Iran. Brent crude futures fell $1.55, or 1.64%, to $92.84, while U.S. West Texas Intermediate crude dropped $2.04, or 2.34%, to $85.02.
Both contracts rose over 5% last week amid stalled U.S.-Iran peace talks, which have already constrained oil shipments through the Strait of Hormuz. The U.S. plans to announce sanctions later Monday, with Treasury Secretary Scott Bessent threatening the “toughest sanctions in history” and potential restrictions on Iran’s trading partners.
Analysts warn the sanctions could further reduce regional oil supply, with Iran vowing retaliation against any embargo. Markets remain on edge over potential disruptions to a key global oil transit route.