Global oil prices declined on Monday amid renewed tensions between the United States and Iran, as concerns over escalating economic sanctions and disruptions around the Strait of Hormuz weighed on the global energy market.
At the weekend, the United States and Iran became embroiled in a fresh trade dispute after US President Donald Trump announced plans to tighten economic sanctions on Iran and its allies under the proposed “Economic D Sanctions.”
Iranian authorities, in response, vowed to retaliate against the proposed US economic sanctions, heightening concerns about further instability in the Middle East.
The growing tensions also contributed to a decline in vessel traffic through the Strait of Hormuz, a major global energy route, raising fresh concerns about oil supply and international energy markets.
Despite the geopolitical tensions, oil prices moved lower on Monday. Brent crude fell by 1.84 per cent to $92.65 per barrel, while West Texas Intermediate (WTI) declined by 2.25 per cent to $85.17 per barrel as of the time of filing this report.
