Oil falls more than 2% as US sanctions on Iran loom

Crude oil fell more than 2% to below $85 a barrel on Monday, ending a two-week rally as traders awaited details of the US plan to intensify economic pressure on Iran.

Treasury Secretary Scott Bessent said the objective was to cut off Tehran’s economic lifelines, although the scope for further measures remains uncertain.

Targeting China, the largest buyer of Iranian crude, could increase pressure on Tehran but also risk broader economic repercussions.

Iran has previously demonstrated its ability to circumvent sanctions and has warned against countries supporting Washington’s efforts.

Meanwhile, oil continues to move through the Strait of Hormuz, with shipments remaining relatively strong despite ongoing geopolitical risks.

Reports suggested around 16 million barrels crossed the waterway in a single night last week, although flows can vary significantly.