Global Oil prices fell by more than $1 a barrel on Monday as traders locked in profits following recent gains while awaiting details of potentially tougher US sanctions against Iran.
Brent crude futures dropped $1.16, or 1.23%, to $93.23 a barrel at 1131 GMT. US West Texas Intermediate (WTI) crude declined $1.55, or 1.78%, to $85.51 a barrel.
Both benchmarks had recorded their second straight weekly increase last week, gaining more than 5% as stalled US-Iran peace efforts added pressure to oil shipments through the Strait of Hormuz, a vital energy corridor that previously handled about one-fifth of global oil supplies.
US Treasury Secretary Scott Bessent has warned that Washington could introduce what “toughest sanctions in history” against Iran. President Donald Trump has also threatened penalties against countries that continue trading with Iran.
Media quoted market analysts as saying that any implementation of the proposed sanctions could reduce regional oil supplies. They say that the US could intensify its naval restrictions on Iranian oil exports, potentially prompting Tehran to respond with attacks on oil facilities elsewhere in the Middle East.
Iran has rejected the planned US sanctions, while President Masoud Pezeshkian has continued to call for a diplomatic resolution. Pakistan’s army chief Syed Asim Munir is in Tehran for mediation efforts ahead of the expected US announcement.
Meanwhile, shipping activity through the Strait of Hormuz remained severely restricted. Fewer than 20 commodity vessels crossed the waterway over the weekend, according to shipping data, amid Iranian and US restrictions affecting traffic through the key energy chokepoint.
Iran has, however, allowed several Iraqi oil tankers to pass through the strait following repeated requests from Baghdad, Iranian state news agency IRNA reported. Traders also said Iraq’s SOMO and QatarEnergy had offered crude for loading within the strait through tenders.
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