Oil Prices Plummet as Investors Favor Economic Pressure Over Military Escalation

Oil prices plummeted to their lowest levels in over a week as investors brushed off US sanctions on Iran, instead focusing on economic pressure rather than military escalation.

Brent crude futures dropped by 35 cents or 0.38% to $91.82 per barrel at 08:10 GMT, while US West Texas Intermediate crude fell by 41 cents or 0.48% to $84.60.

Ole Hansen, head of commodity strategy at Saxo Bank, said the shift from military conflict to economic pressure had reduced oil market anxiety.

Iran has vowed to retaliate against expanded US sanctions but Washington stopped short of imposing penalties, providing countries with time to comply instead.