Oil Prices Plunge Amid Downplayed US Sanctions Impact

Oil prices plummeted to a one-week low on Tuesday as investors downplayed the impact of new US sanctions against Iran.

The Brent crude futures fell by $2.72, or 3%, to $89.44 a barrel, while U.S. West Texas Intermediate crude was down $2.52, or 3%, at $82.55.

This marked the lowest level for Brent since August 19 and U.S. West Texas Intermediate's weakest point since August 17.

Ole Hansen, head of commodity strategy at Saxo Bank, attributed the shift from a military escalation to economic pressure in the US-Israeli war with Iran as reducing oil market anxiety.

The US Treasury Department stopped short of imposing penalties on countries that continue to do business with Iran, giving them time to comply with the new directive.