Oil prices fell about 1% on Monday as investors took profits ahead of an expected U.S. announcement on new sanctions against Iran, adding to uncertainty over future oil supplies from the Middle East.
Brent crude futures fell 94 cents, or 1%, to $93.45 a barrel, while U.S. West Texas Intermediate crude fell 92 cents, or 1.06%, to $86.14 a barrel, Reuters reported on Monday.
The decline came as markets awaited details of Washington’s planned sanctions. U.S. Treasury Secretary Scott Bessent was expected to announce measures that he has described as among the toughest sanctions against Iran. President Donald Trump has also threatened sanctions against countries that continue trading with Tehran.
The market reaction reflects competing concerns over Iran’s oil exports. While tougher sanctions could reduce Iranian supplies and push prices higher, investors were focused on the immediate uncertainty surrounding Washington’s announcement and took profits after oil prices had gained more than 5% last week.
The Strait of Hormuz remains a major concern for energy markets. Reuters reported that oil shipments through the strategic waterway have been disrupted during the wider U.S.-Iran confrontation, while Iran has threatened further action against Gulf oil exports if economic pressure intensifies. Any further disruption to supplies or shipping through the Strait of Hormuz could quickly increase volatility in global energy markets.
