Singapore, Aug. 24 (SANA) Oil prices slipped more than $1 a barrel Monday as investors took profits ahead of Washington’s expected announcement of new sanctions on Iran that could further disrupt supplies from the Middle East.
Brent crude futures fell $1.49, or 1.6%, to $92.90 a barrel, while US West Texas Intermediate crude fell $1.74, or 2%, to $85.32.
Both contracts posted their second consecutive weekly gains last week, rising more than 5% as US-Iran peace talks reached a stalemate, restricting oil shipments through the Strait of Hormuz, where a fifth of the world’s supply used to transit.
US Treasury Secretary Scott Bessent, who is set to hold a press conference, has threatened to impose “the toughest sanctions in history” on Iran. President Donald Trump has also threatened sanctions against Iran’s trading partners.
Some analysts expect the recovery in Middle East supplies to take longer than previously anticipated as the US-Iran conflict persists.
“Crude supply is tightening. Recent weeks have seen one of the sharpest declines in oil-on-water, whilst onshore inventories are declining as well, including in China,” Morgan Stanley analysts said in a note.
Meanwhile, fewer than 20 commodity vessels transited the Strait of Hormuz over the weekend, shipping data showed Monday, as Iranian and US blockades restricted traffic through the key route for energy shipments.
N.J/MF
