Iran Sanctions Fail to Dent Oil Prices as Market Shifts Focus

Oil prices plummeted on Tuesday to their lowest levels in over a week as investors shrugged off the latest US sanctions campaign against Iran.

The Brent crude futures fell by $2.96, or 3.21%, to $89.21 a barrel at 0957 GMT, while U.S. West Texas Intermediate crude dropped by $2.84, or 3.34%, to $82.17.

Ole Hansen, Saxo Bank's head of commodity strategy, attributed the shift in market anxiety from military conflict to economic pressure as a key factor behind the decline.

Hansen noted that the US sanctions announcement was not as forceful as some traders had expected, reducing concerns about further threats to Middle Eastern oil supply.