Oil falls ahead of US announcement on new Iran sanctions
Oil prices dropped as markets reacted to anticipated U.S. sanctions against Iran, which could further restrict global supply. Analysts remain divided on whether economic isolation will force Iran to de-escalate or retaliate through increased regional instability.
Why it matters
Energy market volatility directly impacts global inflation and geopolitical stability in the Middle East.
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SINGAPORE: Oil prices slipped more than $1 a barrel on Monday as investors took profits ahead of an expected announcement from Washington about imposing more sanctions on Iran that may further disrupt supplies from the Middle East.</p>
Brent crude futures fell $1.23, or 1.3 percent, to $93.16 by 06:29 a.m. Saudi time, while US West Texas Intermediate crude was at $85.7 a barrel, down $1.36, or 1.6 percent.</p>
Both contracts posted their second weekly gains last week, up more than 5 percent, as peace talks between the US and Iran hit a stalemate, capping oil shipments through the Strait of Hormuz where a fifth of the world’s supply used to transit.</p>
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