Global oil prices fell by more than $1 a barrel on Monday as investors began taking profits ahead of a possible announcement of tougher US sanctions on Iran.

Brent crude futures dropped $1.22, or 1.29%, to $93.17 a barrel, while US West Texas Intermediate (WTI) crude fell $1.20, or 1.38%, to $85.86 a barrel.

Both benchmarks had gained more than 5% last week as stalled peace talks between the United States and Iran and disruptions to oil shipments through the Strait of Hormuz raised concerns about global supplies.

New US sanctions in focus

US Treasury Secretary Scott Bessent could announce new sanctions against Iran at a press conference on Monday. He has threatened to impose the toughest sanctions in history, while President Donald Trump has indicated that Iran’s trading partners could also face penalties.

Hormuz remains crucial

Trading sources said US pressure has reduced offers of Iranian oil to China while pushing prices higher. However, Iran has allowed some Iraqi oil tankers to pass through the Strait of Hormuz after several requests from Baghdad.

Analysts believe Iran’s response and the details of any new US sanctions will play a key role in determining the direction of oil prices in the coming days.