Oil prices fall before Trump's Iran sanctions
Oil prices declined by more than a dollar per barrel during Monday's trading session, as investors pocketed profits following a strong rally. This comes amid anticipation of the new American sanctions on Iran, which could cause disruptions in oil supplies from the Gulf, particularly through the Strait of Hormuz, where oil flow has decreased. Brent crude fell to around $92.84 per barrel, while West Texas Intermediate dropped to $85.02, after achieving gains of over 5 percent the previous week. The impact of the sanctions on the market largely depends on their scope, as U.S. officials threaten to impose harsher measures on Tehran, potentially leading to increased Iranian escalation and heightened risks in energy markets. This is especially concerning given the ongoing navigation restrictions in the Strait of Hormuz and worries about the United States' ability to exert control over movement through the strait.
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