Crude oil prices declined on Monday as investors locked in profits following recent gains while awaiting details of a new round of U.S. sanctions against Iran.
Brent crude oil, against which Nigerian crude oil is priced, fell by more than $1 a barrel in early trading to $93 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped toward $86 per barrel.
The decline comes after both benchmarks advanced last week as escalating tensions between Washington and Tehran increased concerns about supplies from the Middle East.
Despite Monday’s pullback, oil prices remain elevated as traders continue to assess the potential impact of additional U.S. measures against Iran and the implications for crude shipments through the Strait of Hormuz.
U.S. Treasury Secretary Scott Bessent is expected to unveil the new sanctions later on Monday as Washington intensifies economic pressure on Tehran.
The Trump administration has indicated that the measures will form part of a broader effort to restrict Iran’s access to international trade and financial flows.
Investors are particularly watching whether the measures will target countries and companies involved in purchasing Iranian crude or facilitating transactions connected to the country’s energy exports.
Any effective restriction on Iranian exports could tighten global supplies and provide renewed support for crude prices.
The Strait of Hormuz also remains central to the outlook for the oil market. The waterway is one of the world’s most important energy transit routes, and uncertainty surrounding shipping through the region has maintained a geopolitical premium in crude prices.
Oil prices had risen on Friday after U.S. President Donald Trump threatened economic penalties against countries supporting Iran, helping Brent record another weekly advance.
Monday’s decline therefore partly reflected profit-taking following the recent rally rather than a significant improvement in the geopolitical outlook.
Brent was down around 1.4% during Monday’s trading, while WTI declined about 1.6%, as investors positioned themselves ahead of Washington’s announcement.
The direction of crude prices during the remainder of the session is expected to depend heavily on the scope of the sanctions and whether traders believe they can materially reduce Iranian oil exports.
For oil-importing economies, sustained prices above $90 per barrel could increase energy and transportation costs and complicate efforts by central banks to contain inflation.
For producers, however, elevated prices provide stronger revenues, particularly if geopolitical disruptions do not significantly affect their own production and export volumes.
