Oil prices fell by more than 1.5% during Monday’s trading, on the back of investor profit-taking, as markets awaited a U.S. announcement regarding new sanctions against Iran, likely to intensify disruptions to oil supply from the Middle East.
Brent futures declined by 1.76%, to $92.73 a barrel, while U.S. West Texas Intermediate (WTI) fell by 2%, to $85.27 a barrel.
Despite the decline recorded on Monday, the two benchmarks posted a second consecutive weekly gain last week, with increases exceeding 5%, amid the persistent stalemate in talks between the United States and Iran. This situation helped curb oil shipments through the Strait of Hormuz, through which about a fifth of global supply passes.
The U.S. Treasury Secretary, Scott Bessent, threatened to impose on Iran “the toughest sanctions ever adopted.”
U.S. President Donald Trump also threatened to impose sanctions on Iran’s trading partners, while energy markets remained in anticipation of the nature of the new U.S. measures and their repercussions on global oil flows.
Iranian crude volumes offered to Chinese buyers have declined and prices have risen, the U.S. blockade having led to a drop in Tehran’s shipments, according to industry sources.
Iran’s IRNA news agency also said on Saturday that Tehran had authorized several Iraqi tankers to pass through the Strait of Hormuz, following repeated requests from Baghdad.
