Global oil prices eased on Monday as fresh U.S. sanctions against Iran raised concerns over supply disruptions through the Strait of Hormuz, a critical chokepoint for crude shipments.
Brent crude futures were down 0.9% at $93.51 per barrel by 20:43 GMT, following a 5% gain over the prior two weeks. West Texas Intermediate futures fell 1.1% to $86.08 per barrel. The Strait of Hormuz, which accounts for roughly 20% of global oil transit, has become a focal point amid escalating tensions between Washington and Tehran.
U.S. Treasury Secretary Scott Bessent warned in a Financial Times opinion piece of an "economic D-Day" for Iran, signaling the potential impact of the latest sanctions. Iranian officials, including Secretary of Iran's National Security Council Mohsen Rezaee, vowed retaliation, stating that "not a single drop of oil will be exported" through the Strait of Hormuz or elsewhere in the Persian Gulf if the economic pressure continues.
The developments follow a weekend of heightened rhetoric, with U.S. President Donald Trump and Iranian leadership exchanging statements on the escalating measures. Analysts note that any disruption to oil flows through the Strait of Hormuz could tighten global supply, though markets have so far shown limited reaction beyond the immediate price moves.
The announcement comes as Brent crude nears three-month highs, supported by supply constraints and geopolitical risks in the Middle East. Investors will monitor the situation closely ahead of a scheduled press conference on Monday at 15:00 GMT, where further details on the sanctions are expected.
