Oil Prices Fall Ahead of US Announcement on New Iran Sanctions

Oil prices slipped more than $1 a barrel on Monday as investors took profits after recent gains and awaited details of expected new U.S. sanctions on Iran.

Brent crude futures were down $1.55, or 1.64%, to $92.84, while U.S. West Texas Intermediate crude was at $85.02 a barrel, down $2.04, or 2.34%. U.S. Treasury Secretary Scott Bessent is scheduled to hold a press conference at 1 p.m. EDT (1700 GMT) on Monday to outline sanctions on Iran. Bessent has threatened to impose the toughest sanctions in history on Iran, and President Donald Trump has also threatened sanctions on Iran's trading partners.

Both Brent and WTI crude contracts posted a second consecutive weekly gain last week, rising more than 5%. This increase occurred as peace negotiations between the U.S. and Iran stalled, constraining oil shipments through the Strait of Hormuz, a route that once carried a fifth of global supplies. Iran's foreign minister, Abbas Araqchi, dismissed the threat of new U.S. sanctions as a sign of desperation on Sunday, stating the measures would fail to defeat Tehran.

Araqchi said Washington must speak to Iran respectfully to find a solution based on justice and honour. Iran's economy is already under pressure from international sanctions. Its infrastructure has been repeatedly hit, and thousands of people have been killed in airstrikes on the Islamic Republic since the U.S. and Israel launched attacks on February 28.

Tehran remains defiant after nearly six months of war and has brought shipping to a virtual standstill in the Strait of Hormuz, refusing to allow unauthorized oil tankers to transit. Trump has warned of economic consequences against any country providing any type of lifeline to Iran. Bessent has urged cooperation from China, which bought over 80% of Iran's shipped oil in 2025, though China has urged diplomacy. An Iranian official stated that support for new sanctions would be an act of war.