Oil Prices Fall in Global Markets Ahead of New Sanctions on Iran
LONDON: Global crude oil prices fell more than $1 per barrel as investors gambled for profits after robust gains last week before a likely new round of harsh sanctions against Iran are announced by the United States. The U.S. Treasury Secretary Scott Bessent announced that he will enforce some of the most stringent economic sanctions in history against Tehran, while U.S. President Donald Trump has threatened to impose secondary sanctions against any countries that are “still conducting business with Iran.”
In international markets, Brent crude futures fell $1.22 (1.29%) to $93.17 a barrel and U.S. West Texas Intermediate (WTI) crude dropped $1.20 (1.38%) to $85.86 per barrel. The price rally had come off the heels of two consecutive weekly increases in crude prices, despite this adjustment, driven by no progress in nuclear talks between Washington and Tehran and continued worries over supplies through the Strait of Hormuz, which handles about one-fifth of global oil exports.
The long-term effectiveness of maximum economic isolation remains to be seen, but the prospect of retaliatory measures by Iran is constant threats to energy supply chains, said commodity analysts, including Vivek Dhar, Commonwealth Bank of Australia. But meanwhile, Iranian President Masoud Pezeshkian has stressed the need for diplomatic solutions.
In a regional development, Iran is said to have allowed several Iraqi oil tankers through the Strait of Hormuz after formal requests from Baghdad, which temporarily eased local stresses on the route.