Oil falls ahead of US announcement of new sanctions on Iran

Business Recorder reported that crude prices dropped by over $1 per barrel on Monday as traders booked profits following the recent rally and waited for details of expected new US sanctions on Iran. Brent crude futures stood at $93.23 after falling $1.16, or 1.23 per cent, while West Texas Intermediate was priced at $85.51, down $1.55.

Both benchmarks registered a second straight weekly advance, gaining over 5 per cent, as peace talks between Washington and Tehran stalled and restricted shipments through the Strait of Hormuz, once a passage for a fifth of worldwide supply. Treasury Secretary Scott Bessent, due to brief the press later on Monday, has promised severe measures against Iran, while President Donald Trump has threatened penalties on countries doing business with Iran.

PVM analyst Tamas Varga said a pledged embargo would reduce regional oil supply, and that Iran could respond with fresh strikes on Middle East oil installations. Morgan Stanley lifted its Brent forecasts and sees a peak of $100 during the fourth quarter, while Fatih Birol, head of the IEA, said no second drawdown from strategic stockpiles is currently under discussion.