Iran's Hormuz Threat Sinks Oil Prices in a Flash

Oil prices took a hit on Tuesday after an unnamed Iranian official told Kyodo News that Iran would reopen the Strait of Hormuz within seven days if the United States eases military pressure.

The market reacted swiftly, with crude futures reversing early gains and breaking through the first support level. This came just as fresh sanctions against Iranian airlines were set to start on Wednesday.

The diplomatic opening seemed to erase the bid built on these sanctions, leaving investors uncertain about their next move.