Oil prices slip ahead of fresh U.S. sanctions on Iran

Oil prices slipped on Monday as the market awaited the specifics of a new American sanctions package aimed at Iran. Washington has described the package as its harshest economic push so far against Tehran. Mettis Global data showed Brent crude futures down 0.19 per cent to $93.60 a barrel, while West Texas Intermediate shed 0.22 per cent to $86.64 per barrel.

U.S. Treasury Secretary Scott Bessent is expected to unveil the new steps later today. CNBC reported that Bessent signalled Washington was getting ready for a sweeping economic squeeze on Iran, while President Donald Trump had cautioned that countries helping Tehran evade sanctions would face severe penalties. The move follows an administration effort to heighten financial pressure on Iran and dissuade other nations from dealing commercially with Tehran.

The Islamic Revolutionary Guard Corps dismissed the mounting pressure, asserting that Iran has its own means to blunt restrictions and keep trade links with other countries. The Commonwealth Bank of Australia expects oil markets to stay highly volatile in the remaining months of 2026, projecting a $70 to $100 per barrel band for the rest of the year. The bank added that prices could drift toward the lower end if Hormuz flows climb back to 50% to 60% of pre-war levels, a rebound that could revive fears of a global oil surplus.