Oil falls as US prepares to unveil new Iran sanctions

Business Recorder reported that oil prices slipped by more than $1 a barrel on Monday as traders took profits ahead of an anticipated US announcement on further sanctions against Iran. Brent crude fell $1.23, or 1.3%, to $93.16 by 0329 GMT, while West Texas Intermediate dropped $1.36, or 1.6%, to $85.7 a barrel. Both benchmarks had gained more than 5% last week, marking their second straight weekly rise.

US Treasury Secretary Scott Bessent is scheduled to hold a press conference at 2 p.m. EDT on Monday, after threatening Iran with sanctions he described as the harshest ever imposed. President Donald Trump has also raised the prospect of penalties on Iran's trading partners. Peace talks between Washington and Tehran have stalled, limiting oil flows through the Strait of Hormuz, which previously handled about a fifth of the world's supply.

Iran has criticised the planned US measures, even as President Masoud Pezeshkian urged a diplomatic solution. Morgan Stanley analysts said crude supply is tightening, citing a sharp drop in oil on water and falling onshore stocks, including in China, and they have slowed their assumption for a Middle East supply recovery. Iran has also let several Iraqi tankers pass through the Strait after repeated requests from Baghdad, IRNA reported.