Global oil prices declined on Monday as investors booked profits ahead of anticipated U.S. sanctions on Iran, which could further disrupt crude supply through the Strait of Hormuz.
Brent crude, the international benchmark, fell 1.29% to $93.17 per barrel, while U.S. West Texas Intermediate (WTI) dropped 1.38% to $85.86 per barrel. The declines came as U.S. Treasury Secretary Scott Bessent warned of the "strictest sanctions in history" targeting Iran, heightening concerns over potential supply constraints.
The Strait of Hormuz, a critical chokepoint for global oil shipments, typically handles about one-fifth of the world’s seaborne crude exports. Earlier last week, prices surged more than 5% as stalled U.S.-Iran peace talks raised the risk of disruptions to oil flows through the strait.
Iranian President Masoud Pezeshkian condemned the planned sanctions but reiterated calls for a diplomatic resolution. The announcement from Bessent is expected during a press conference later in the day, adding to market uncertainty over the potential scale and timing of the measures.
The latest price declines follow a period of volatility driven by geopolitical tensions in the Middle East, which have periodically threatened to tighten global oil supply amid broader market tightness.
