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Oil slides as markets brace for more US sanctions on Iran
Brent was down $1.2, or 1.3%, to $93.2 a barrel and WTI fell $1.4, or 1.6%, to $85.7 as traders weigh tighter sanctions and potential Strait of Hormuz disruption.
Oil prices fell more than $1 a barrel as traders took profits ahead of an expected US announcement on tougher sanctions against Iran, reviving concerns about Middle East supply risks. Hedgeweek, citing Reuters, said Brent crude dropped $1.23, or 1.3%, to $93.16 a barrel by 0329 GMT, while West Texas Intermediate fell $1.36, or 1.6%, to $85.70. The pullback came after both benchmarks gained more than 5% last week for a second consecutive weekly advance, as a breakdown in US-Iran diplomatic efforts raised the risk of prolonged disruptions to oil flows through the Strait of Hormuz. The waterway historically handles roughly a fifth of global oil supplies, making escalation between Washington and Tehran a potential driver of volatility, according to the report. US Treasury Secretary Scott Bessent is set to outline the administration’s next steps at a press conference, after warning that Washington was preparing what he called its toughest sanctions yet against Iran. President Donald Trump has also threatened measures targeting countries and companies that continue to trade with Tehran, with Iran rejecting the planned sanctions while President Masoud Pezeshkian continues to call for diplomacy. The report also pointed to early signs of supply pressure and shifting market expectations, including lower offers of Iranian crude to Chinese buyers alongside higher prices as shipments are constrained. It added that Iran has allowed several Iraqi oil tankers to transit the Strait of Hormuz after requests from Baghdad, while Morgan Stanley analysts said oil held on tankers has fallen sharply in recent weeks.
Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%