WTI at $81 as threat of Iran oil sanctions loom

U.S. crude oil fell below $81 a barrel on Tuesday, its lowest level since March, as the market shrugged off the threat of additional sanctions on Iranian oil.

Here are the latest energy prices:

• West Texas Intermediate June contract: $80.92 per barrel, down 97 cents or 1.18%. U.S. crude oil is up about 13% this year.
• Brent June contract: $86.09 per barrel, down 91 cents or 1.05%. The global benchmark is up about 12% this year.
• RBOB gasoline May contract: $2.65 per gallon, down 3 cents or 1.33%. Gasoline futures are up about 26% this year.
• Natural gas May contract: $1.76, down 1.62%. Natural gas is down 30% this year.

The House of Representatives passed legislation over the weekend expanding sanctions on Iranian oil exports to foreign ports, ships and refineries that knowingly process crude from the Islamic Republic. The Senate could vote on the bill as soon as this week.

Under the terms of the bill, President Biden would implement sanctions within 180 days of enactment of the legislation, but has the authority to waive sanctions if he determines that doing so is in the national security interest the United States.

“This bill significantly increases sanctions on Iran, it increases enforcement mechanisms,” Helima Croft, a commodities strategist at RBC Capital Markets, told CNBC’s Squawk Box on Monday.

The White House will face a “difficult choice” this summer: impose sanctions or grant waivers due to concerns about the tightening oil market, Croft said.

The Biden administration is very concerned about rising oil prices as the election approaches, said Amrita Sen, founder and research director at Energy Aspects.

“It’s an election year in the United States, and the United States will do absolutely everything in its power to make sure that prices don’t go up,” Sen said Tuesday on Crude Realities. ” from CNBC.