Iran Sanctions Send Oil Prices on Wild Ride as US Turns to Economic Coercion

Oil prices steadied on Tuesday after falling more than 2% in the previous session as investors assessed the impact of harsher US secondary sanctions against Iran.

Brent crude futures were down 9 cents, or 0.1%, at $92.16 by 0104 GMT, while US West Texas Intermediate crude was up 1 cent at $85.02 a barrel.

On Monday, US Treasury Secretary Scott Bessent unveiled an expansion of sanctions to cut off Iran's economic lifeline, forcing countries to sever their business ties or risk being cut out of the dollar-based financial system.

However, he declined to identify the countries that would be targeted or reveal when those penalties would take effect.

Analysts said the US is turning towards more economic coercion, which removed concerns about threats to Middle Eastern oil supply due to the war.