1 week ago
Oil Prices Fall Ahead of Expected New Iran Sanctions
Oil prices went down by more than 1% on Monday.
Investors sold some oil investments to lock in recent profits.
They were waiting for the United States to announce possible new sanctions against Iran.
The sanctions could make it harder for Iran to sell oil.
Peace talks between the United States and Iran have stalled.
This has limited some oil shipments through the Strait of Hormuz.
That waterway previously carried about one-fifth of the world's oil supply.
Analysts still expect supply problems and stronger Chinese demand to support oil prices.
One firm raised its forecasts for Brent crude prices.
Brent crude fell $1.22, or 1.29%, to $93.17 a barrel on Monday.
West Texas Intermediate dropped $1.20, or 1.38%, to $85.86 per barrel.
Investors booked profits ahead of an expected US announcement on additional sanctions against Iran.
The stalled US-Iran peace talks have limited shipments through the Strait of Hormuz, a major oil route.
One firm raised its Brent forecast to $86 for the quarter and $84 for fiscal 2027 because of continuing supply disruptions and stronger demand.
- Who
- Investors, the United States, Iran, and oil-market analysts are involved.
- What
- Brent and West Texas Intermediate crude prices fell more than 1% ahead of expected new US sanctions on Iran.
- Where
- The impacts concern global oil markets and shipments through the Strait of Hormuz.
- When
- Monday; US Treasury Secretary Scott Bessent was scheduled to speak at 2 p.m. EDT.
- Why
- Investors booked profits, while the anticipated sanctions and stalled talks raised concerns about disruptions to Middle Eastern oil supplies.
Key facts
- Brent price
- $93.17 a barrel after falling $1.22, or 1.29%.
- WTI price
- $85.86 a barrel after falling $1.20, or 1.38%.
- Recent performance
- Both benchmarks gained more than 5% last week for a second consecutive weekly rise.
- Expected sanctions
- Scott Bessent warned Iran could face what he called the toughest sanctions in history.
- Strait of Hormuz
- The route previously carried around one-fifth of the world's oil supply.
- Quarterly Brent forecast
- One firm raised its estimate from $85 to $86 a barrel.
- Fiscal 2027 Brent forecast
- The estimate was raised from $82 to $84 a barrel.
Quotes
The firm cited in the report
An unnamed firm providing oil-price forecasts in a report
“We now expect Brent prices to average at USD86/b during the quarter from our previous estimate of USD85/b. Meanwhile, we raise our Q3FY27 estimate from USD72/b to USD75/b.”
livemint.com
Sources
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