Oil prices fell by more than $1 a barrel on Monday as investors took profits ahead of an expected US announcement of tougher sanctions on Iran, raising concerns over further disruptions to Middle East supplies, Reuters reported.
Brent crude fell $1.23, or 1.3%, to $93.16 a barrel, while US WTI declined $1.36, or 1.6%, to $85.70.
Both benchmarks gained more than 5% last week as stalled US-Iran talks and disruptions to oil shipments through the Strait of Hormuz tightened supply.
US Treasury Secretary Scott Bessent is expected to announce new measures against Iran, while President Donald Trump has also threatened sanctions on countries trading with Tehran.
Analysts warned that tighter sanctions could further reduce Iranian exports and increase the risk of renewed regional conflict. Iranian crude supplies to Chinese buyers have already declined, while oil prices have risen amid the US blockade.
Morgan Stanley analysts said Middle East supply recovery could take longer than previously expected, citing sharp declines in oil held at sea and falling onshore inventories, including in China.