SINGAPORE: Oil prices fell more than 1% on Monday, August 24, as investors took profits ahead of expected new US sanctions on Iran that could further disrupt supplies in the Middle East.
Brent crude futures dropped $1.23, or 1.3%, to $93.16 a barrel by 0329 GMT, while US West Texas Intermediate (WTI) fell $1.36, or 1.6%, to $85.70, Reuters reported.
The decline followed a second consecutive weekly gain for both benchmarks. Brent and WTI rose more than 5% last week as stalled US-Iran peace talks continued to restrict shipments through the Strait of Hormuz.
US Treasury Secretary Scott Bessent is scheduled to hold a press conference at 2 p.m. EDT, or 1800 GMT. He has threatened what he called the “toughest sanctions in history” against Iran, while President Donald Trump has also threatened measures against countries trading with Tehran.
Iran has condemned Washington’s planned measures, while President Masoud Pezeshkian has continued to call for a diplomatic solution. The dispute has kept markets focused on potential disruptions to Iranian exports and shipping through the Strait of Hormuz.
Trade sources said offers of Iranian crude to Chinese buyers had declined and prices had risen as restrictions cut Tehran’s shipments. Iran, however, permitted some Iraqi oil tankers to pass through the strait following Baghdad’s requests.
Read: Iran Sanctions: Tehran Says New US Economic Push Will Fail
Morgan Stanley analysts said crude supply was tightening, citing sharp declines in oil held at sea and falling onshore inventories, including in China. The bank said Middle East exports had fallen back to levels last seen around March and April.
