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Oil drops more than $2 as investors await new Iran sanctions details
Brent fell to $92.69, while West Texas Intermediate slipped to $85.34, as traffic through the Strait of Hormuz remained constrained amid U.S. and Iranian blockades.
Oil prices fell more than $2 a barrel on Monday as investors took profits after recent gains and waited for details on expected new U.S. sanctions on Iran, which could further disrupt Middle East supplies, according to Reuters. Brent crude futures were down $1.71, or 1.8%, to $92.69 at 12:48 p.m. ET, while U.S. West Texas Intermediate was down $1.72, or 2.0%, at $85.34 a barrel. The contracts had posted a second consecutive weekly gain last week, rising more than 5%, as peace negotiations between the U.S. and Iran stalled, tightening shipments through the Strait of Hormuz, a route that historically carried about a fifth of global supplies. U.S. Treasury Secretary Scott Bessent is scheduled to hold a press conference at 1 p.m. EDT to outline measures that could broaden the scope of secondary sanctions for entities and countries with economic ties to Iran. Reuters also reported that President Donald Trump has threatened sanctions on Iran’s trading partners, and analysts said a broader sanctions move could reduce regional oil supply further, potentially prompting the U.S. to tighten its naval blockade and raising the risk of Iranian retaliation against oil installations. Shipping data cited by Reuters showed fewer than 20 commodity vessels transited the Strait of Hormuz over the weekend, as blockades by the U.S. and Iran restrict traffic. TotalEnergies CEO Patrick Pouyanne said the company was still moving oil through the strait profitably, with higher transport costs offset by discounts from crude producers, while Iraq’s SOMO and QatarEnergy offered crude for loading inside the strait in tenders.
Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%