Dubai: Oil prices fell by more than a dollar a barrel on Monday as investors took profits ahead of an expected announcement from the United States of new sanctions on Iran, amid concerns that the sanctions could further disrupt oil supplies from the Middle East. Brent crude futures fell $1.22, or 1.29%, to $93.17 a barrel by 00:35 GMT, while U.S. West Texas Intermediate crude futures fell $1.20, or 1.38%, to $85.86 a barrel.

According to National Iraqi News Agency, both benchmarks had posted weekly gains for the second consecutive week last week, rising by more than 5%, as stalled peace talks between the United States and Iran contributed to reduced oil shipments through the Strait of Hormuz, through which about a fifth of the world’s energy supply passes. Regarding Iraq, Iran granted permission for several Iraqi oil tankers to transit the Strait of Hormuz, following repeated requests from Baghdad. This move provides a crucial outlet for the continued flow of Iraqi oil exports through the strait, amidst a sh
arp decline in shipping traffic.

These developments come at a time when maritime traffic through the Strait of Hormuz is experiencing a significant drop. Fewer than 20 cargo ships transited the strait over the weekend, according to ship tracking data, with 13 vessels recorded on Saturday and only four on Sunday. US Treasury Secretary Scott Bisnett is scheduled to announce new sanctions against Iran today, Monday, while President Donald Trump has also threatened to impose sanctions on Tehran’s trading partners, further increasing uncertainty about the future of oil supplies and tanker traffic in the region.