Global Crude Oil Prices Drop as Investors Take Profits Ahead of US Sanctions on Iran

Global crude oil prices fell by over $1 per barrel on Monday as investors began profit-taking ahead of expected new US sanctions against Iran.

Brent crude futures dropped $1.22 (1.29%) to $93.17 per barrel, while US West Texas Intermediate (WTI) crude fell $1.20 (1.38%) to $85.86 per barrel. The decline follows a strong rally last week, where both contracts gained over 5 percent due to supply fears linked to stalled US Iran peace talks and shipping disruptions in the Strait of Hormuz.

The price dip comes as US Treasury Secretary Scott Bessent prepares to announce new economic measures against Tehran. Washington has threatened the toughest sanctions in history, with US President Donald Trump warning that Iran’s international trading partners could face penalties as well.

While Iran condemned the sanctions and called for diplomatic solutions, the market is already seeing effects in Asia, where offers for Iranian crude to China have dropped while prices have risen.

Market Impact and Regional Energy Risks

Analysts warn that if the upcoming US sanctions succeed in further isolating Iran economically regional tensions and energy market risks could escalate quickly.

Meanwhile Iran has granted permission for select Iraqi oil tankers to pass through the Strait of Hormuz following repeated requests from Baghdad.

Market experts emphasize that the specific details of the US sanctions and Iran’s leadership response over the coming days will decide the next direction for global oil prices.