International crude oil prices plunged on Monday ahead of the announcement of the new US sanctions against Iran. The United States has pledged to impose the toughest economic sanctions against Iran.
Oil prices fell more than $1 a barrel on Monday as investors booked profits before Washington announces new sanctions against Iran.
Brent crude futures declined $1.22, or 1.29%, to $93.17 a barrel by 0035 GMT. Meanwhile, US West Texas Intermediate dropped $1.20, or 1.38%, to $85.86.
Markets Watch US Sanctions
Both benchmarks gained more than 5% last week, marking their second consecutive weekly increases. The gains followed stalled US-Iran peace talks.
Consequently, concerns have increased over oil supplies through the Strait of Hormuz. Around one-fifth of global oil supplies previously moved through the strategic waterway.
US Treasury Secretary Scott Bessent plans to announce details of possible measures during a Monday press conference. He has threatened the toughest sanctions against Iran.
Furthermore, President Donald Trump has warned that Washington could target Iran’s trading partners.
Iran Faces Growing Supply Pressure
Analysts said tougher sanctions could further disrupt Iranian oil exports and increase risks for energy markets.
However, Iranian President Masoud Pezeshkian has called for diplomacy despite opposing Washington’s planned sanctions.
Meanwhile, offers of Iranian crude to Chinese buyers have declined, while prices have risen after US restrictions reduced Tehran’s shipments.
Reacting to the upcoming US sanctions, Iran vowed to give a tough time to the United States and foil the sanctions.
