Oil Prices Plummet Amid Shift to Economic Sanctions Against Iran

Oil prices fell by around 3% on Tuesday as the US pivots to economic sanctions rather than military strikes to pressure Iran. The shift in strategy came after the US government unveiled a fresh raft of sanctions on Iran and its enablers, which continue to trade with the Islamic Republic.

The White House has labeled these efforts an 'economic D-Day', with Treasury Secretary Scott Bessent claiming it is 'the single greatest financial offensive ever'.

Bessent stated that if the US is doing the maximum economic pressure, then a return to war is unlikely for now. He told CNBC last week that the decision to ratchet up economic pressure means 'there will not be a large-scale kinetic restart.'