SINGAPORE: Oil prices slipped more than $1 a barrel on Monday as investors took profits ahead of an expected announcement from Washington about imposing more sanctions on Iran that may further disrupt supplies from the Middle East.
Brent crude futures fell $1.22, or 1.29 percent, to $93.17 by 0035 GMT, while US West Texas Intermediate crude was at $85.86 a barrel, down $1.20, or 1.38 percent. Both contracts posted their second weekly gains last week, up more than 5 percent, as peace talks between the US and Iran hit a stalemate, capping oil shipments through the Strait of Hormuz where a fifth of the world’s supply used to transit. US Treasury Secretary Scott Bessent, set to hold a press conference at 2 p.m. EDT (1800 GMT) on Monday, has threatened to impose “the toughest sanctions in history” on Iran. President Donald Trump has also threatened to impose sanctions on Iran’s trading partners.
“It is unclear whether US policy to economically isolate Iran will prove effective,” Vivek Dhar, a commodities analyst at Commonwealth Bank of Australia, wrote in a note.
“But if the US measures do work as intended, Iran’s ability to respond via increased violence becomes a growing risk for energy markets to consider.” Iran has condemned US plans to announce new sanctions even as President Masoud Pezeshkian called for a diplomatic solution.
