Oil prices fell by more than $1 a barrel on Monday, August 24, as investors took profits after two weeks of gains and awaited details of new U.S. sanctions on Iran.
Brent crude fell $1.01, or 1.1%, to $93.38 a barrel by 1316 GMT, while U.S. West Texas Intermediate dropped $1.42, or 1.6%, to $85.64.
Both benchmarks gained more than 5% last week as stalled U.S.-Iran peace talks and restrictions on shipping through the Strait of Hormuz raised concerns over Middle East oil supplies.
U.S. Treasury Secretary Scott Bessent is due to announce the new measures on Monday, with President Donald Trump also threatening sanctions against countries trading with Iran.
Analysts warned that tougher sanctions could further restrict Iranian oil exports and potentially trigger retaliation against oil infrastructure in the region.
Fewer than 20 commodity vessels passed through the Strait of Hormuz over the weekend, according to shipping data, highlighting the disruption at the key energy chokepoint.
Iran has rejected the planned sanctions, while President Masoud Pezeshkian has called for a diplomatic solution as Pakistan’s army chief visited Tehran for mediation talks.
Despite the disruptions, some oil continues to move through the strait, with Iran allowing several Iraqi oil tankers to pass and producers offering crude for loading inside the waterway.
TotalEnergies CEO Patrick Pouyanne said higher transport costs were being offset by steep discounts from crude producers, allowing the company to continue moving oil profitably.
Brent has risen from about $71 a barrel in June, with Morgan Stanley forecasting a peak of $100 in the fourth quarter, while the International Energy Agency said it was not currently considering another release from strategic reserves.