Oil prices fell by more than $1 per barrel on Monday as investors took profits after the recent rally and awaited details of expected new U.S. sanctions against Iran, which could further disrupt supplies from the Middle East, UNN writes, citing Reuters.
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Brent crude futures fell by $1.01, or 1.1%, to $93.38 at 13:16 GMT (16:16 Kyiv time), while U.S. West Texas Intermediate crude stood at $85.64 per barrel, down $1.42, or 1.6%.
Both contracts recorded their second consecutive weekly gain last week, rising by more than 5%, as peace talks between the United States and Iran reached an impasse, limiting oil supplies through the Strait of Hormuz, a route that once carried one-fifth of global supplies.
U.S. Treasury Secretary Scott Bessent, who is due to hold a press conference on Monday, threatened to impose the "toughest sanctions in history" against Iran. U.S. President Donald Trump also threatened to impose sanctions on Iran's trading partners.
"If the promised embargo is imposed, oil supplies from the region will decline," said PVM analyst Tamas Varga, adding that the United States would likely intensify its naval blockade of Iranian oil exports and that Iran could respond with new strikes on oil facilities in the Middle East.
Iran condemned the U.S. plans to announce new sanctions, while President Masoud Pezeshkian called for a diplomatic solution. Pakistan's army chief visited Tehran on Monday for mediation talks ahead of the U.S. announcement.
According to shipping data published on Monday, fewer than 20 cargo vessels passed through the Strait of Hormuz over the weekend, as Iranian and U.S. blockades restricted movement through the narrow passage for energy supplies.
However, Iran granted permission for several Iraqi oil tankers to pass through the strait after repeated requests from Baghdad, Iran's state news agency IRNA reported on Saturday.
TotalEnergies Chief Executive Patrick Pouyanné said the oil company had transported oil through the Strait of Hormuz profitably, with higher shipping costs more than offset by substantial discounts from oil producers.
Iraq's SOMO and QatarEnergy offered oil for loading inside the strait in tenders, traders said.
"The fact that Brent is priced at $93 per barrel, rather than $120-$150, tells us that enough oil is flowing through the Strait of Hormuz and from the Persian Gulf overall," SEB analyst Bjarne Schieldrop told Reuters, adding that the turning point could come if Iran decides to effectively close the Strait of Hormuz using missiles and drones.
The price of Brent crude has risen again to around $92 per barrel, compared with $71 in June, due to declining inventories and a growing sense that disruptions in the Middle East could last longer, Morgan Stanley analysts said in a note.
The bank raised its Brent oil forecasts, projecting a peak of $100 in the fourth quarter.
The International Energy Agency is not currently discussing a second release of oil from strategic reserves, its head Fatih Birol said on Monday.