Brent crude fell toward $93 a barrel on Monday as traders took profits following a strong weekly rally, while markets prepared for an expected U.S. announcement of tougher economic sanctions against Iran.
The pullback comes after oil prices advanced sharply last week amid concerns that additional restrictions on Iranian trade could further tighten global crude supplies.
U.S. Treasury Secretary Scott Bessent has said Washington is preparing what he described as the toughest sanctions imposed on Iran, with measures expected to target both Tehran and its international trading relationships.
Iranian Oil Flows Remain in Focus
Iranian crude shipments have already faced significant disruptions, while offers to Chinese buyers have declined amid U.S. pressure. China remains an important destination for Iranian oil, making the potential impact on those trade flows a key factor for global energy markets.
Iran has rejected the latest U.S. pressure, arguing that the country has experience operating under economic restrictions and intends to maintain commercial relationships with international partners.
Strait of Hormuz Keeps Supply Risks Elevated
Conditions around the Strait of Hormuz remain another major source of uncertainty.
Traffic through the strategic waterway continues to run well below normal levels. The strait is one of the world’s most important energy corridors, connecting Persian Gulf producers with international markets.
Despite Monday’s decline, Brent remains supported by the possibility that tighter restrictions on Iranian exports and continued disruption around Hormuz could reduce the amount of crude reaching global markets.
The immediate focus now turns to Washington’s sanctions announcement and whether the measures significantly affect Iran’s ability to maintain oil exports.
