Oil falls more than 1% amid anticipation of new US sanctions on Iran

Oil prices fell by more than 1 percent on Monday, as investors took profits ahead of an expected US announcement on imposing further sanctions on Iran, a move that could lead to further disruptions in oil supplies from the Middle East.

Brent crude futures dropped $1.22, or 1.29 percent, to $93.17 per barrel, while US West Texas Intermediate crude futures fell $1.20, or 1.38 percent, to $85.86 per barrel.

Both benchmarks recorded weekly gains for the second consecutive week last week, exceeding 5 percent, amid stalled talks between the United States and Iran, which have constrained oil shipments through the Strait of Hormuz, a chokepoint through which about one-fifth of global oil supplies pass.

US Treasury Secretary Scott Bessent threatened to impose the “harshest sanctions ever” on Iran, and is scheduled to hold a press conference on Monday, amid anticipation of details regarding the new US measures and their potential impact on oil supplies.