Oil prices dip 1.8% ahead of US announcement of harsh Iran sanctions
Brent crude fell over 1.8% on Monday as markets awaited details of upcoming US sanctions targeting Iran and its trade partners.
On Monday, Brent crude dropped more than 1.8%, trading at $93.00 per barrel, as investors braced for a major US sanctions package against Iran and entities that do business with the regime. Treasury Secretary Scott Bessent was slated to hold a press conference at 1 p.m. EDT, where the administration planned to detail the punitive steps. President Donald Trump previously used his Truth Social platform to caution foreign companies about steep financial repercussions.
Analysts note that the measures could compress Iranian oil flows and add pressure to already disrupted shipping through the Strait of Hormuz, where traffic remains limited. TotalEnergies CEO Patrick Pouyanne described current navigation as “very quiet” and highlighted soaring freight and insurance costs for supertankers transiting the strait. He added that the company is purchasing Gulf crude at $50-$60 a barrel and seeks alternative routes for future Middle-East investments.
Why it matters
The sanctions could further tighten global oil supplies and raise energy costs worldwide.
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