Oil prices slipped more than $1 a barrel on Monday as investors took profits ahead of ‌an expected

Brent crude futures fell $1.23, or 1.3%, to $93.16 by 0829 PKT, while US West Texas Intermediate crude was at $85.7 a barrel, down $1.36, or 1.6%. Both ​contracts posted their second weekly gains last week, up more than 5%, as peace talks between ​the U.S.

and Iran hit a stalemate, capping oil shipments through the Strait of ⁠Hormuz where a fifth of the world's supply used to transit. US Treasury Secretary Scott Bessent, set to hold a ​press conference at 2pm EDT (1800 GMT) on Monday, has threatened to impose "the toughest sanctions in history" on ​Iran.

Trump also threatened to impose sanctions on Iran's trading partners. "It is unclear whether US policy to economically isolate Iran will prove effective," Vivek Dhar, a commodities analyst at Commonwealth Bank of Australia, wrote in a note.

"But if the ​US measures do work as intended, Iran's ability to respond via increased violence becomes a growing risk for ​energy markets to consider. "Iran has condemned US plans to announce new sanctions even as President Masoud Pezeshkian called for a diplomatic ‌solution.

Read:Iran will use all 'bilateral capabilities' to confront US economic sanctions: Baghaei"The more ⁠pragmatic members of the Iranian leadership would prefer to de-escalate but the hardliners would probably prefer to fight to the bitter end," IG markets analyst Tony Sycamore said.

"I think by the end of this week we will have a good idea which side of the Iranian leadership has the upper hand. "Offers of Iranian crude to ​Chinese buyers have declined, and ​prices have jumped as the ⁠US blockade has cut Tehran's shipments,.

However, Iran has granted permission for a number of Iraqi oil tankers to pass through the Strait following repeated ​requests from Baghdad, Iran’s state news agencyIRNAreported on Saturday. Some analysts are ​expecting the recovery ⁠in supplies from the Middle East to take even longer than expected as the US-Iran conflict persists.

"Crude (supply) is tightening.

Recent weeks have seen one of the sharpest declines in oil-on-water, whilst onshore inventories are declining as well, including ⁠in China," ​said Morgan Stanley analysts in a note. "A reduction in supply is ​driving this, most notably from the Middle East where several data sources put aggregate exports back at March/April levels," they said, slowing ​their assumption for a recovery in Middle East supplies.