Iran Sanctions: Oil Prices Fall as Tehran Vows Retaliation

Oil prices fell on Tuesday after the US expanded economic sanctions on Iran, as Tehran vowed to retaliate and warned it had tools to respond.

The move raised concerns over potential disruption to regional oil supplies. The UK backed Washington's efforts to achieve a diplomatic solution with Iran and welcomed recent measures aimed at increasing pressure on Tehran.

British Finance Minister John Healey said the UK supported US efforts, including expanded sanctions announced against Iran on Monday, and called on Tehran to end what he described as destabilizing activities across the region, including in the Strait of Hormuz.

The Iranian government responded by saying it had tools to respond to the new sanctions. Meanwhile, Qatar continued diplomatic efforts aimed at reviving negotiations between Iran and the US and reducing tensions in the region.