- Oil prices fell by more than 2% in early Asian trade on Monday, with Brent trading at $85.18 per barrel and WTI at $92.32 per barrel, driven primarily by profit-taking.
- The U.S. blockade of Iranian ports has redirected 70 commercial vessels and disabled three, according to CENTCOM.
- Iran's Persian Gulf Strait Authority listed dozens of vessels it says violated transit arrangements and warned of future penalties.
- The next major catalyst is U.S. Treasury Secretary Scott Bessent's press conference at 2 p.m. Monday to announce new economic measures against Tehran, which he described as an economic D-Day.
- Both benchmarks gained more than 5% last week as U.S.-Iran tensions escalated, with Iranian crude exports dropping and tanker traffic through the Strait of Hormuz slowing.
Oil prices fell by more than 2% in early Asian trade as traders took profits ahead of U.S. Treasury Secretary Scott Bessent's press conference, where he is expected to announce new sanctions against Iran, referred to as 'economic D-Day.'67
The benchmarks were trading at $85.18 per barrel, down 2.16%, and $92.32 per barrel, down 2.19%. This pullback follows a week where both benchmarks gained over 5% amid escalating tensions between the U.S. and Iran, including a significant drop in Iranian crude exports and reduced tanker traffic through the Strait of Hormuz.8
The U.S. blockade has redirected 70 commercial vessels and disabled three, impacting Iran's oil exports. In response, Iran is intensifying its control over the strait, warning that vessels violating transit arrangements could face penalties.4
Bessent's announcement could further tighten the oil market if it successfully deters buyers of Iranian petroleum.
“If the new announcement successfully deters buyers or intermediaries, the oil market could tighten further,” analysts suggest.
The situation remains fluid, with traders closely monitoring developments as the geopolitical landscape evolves.
“The U.S. blockade has already redirected 70 commercial vessels and disabled three, per CENTCOM, while Iran's Persian Gulf Strait Authority lists dozens of vessels it says violated transit arrangements. If Bessent's measures deter buyers, the oil market could tighten further.”
Crude Oil Prices Today | OilPrice.com
