Oil Prices Slide on New U.S. Sanctions Against Iran

Oil prices have taken a hit on Tuesday morning following the announcement of new U.S. sanctions against Iran, which some traders saw as a shift towards economic pressure rather than immediate military escalation.

The West Texas Intermediate (WTI) crude price is currently trading at around $84.94 per barrel, essentially flat compared to Monday's settlement of $85.01, down about 0.1%.

Brent crude, on the other hand, has seen a more significant decline, with its price dropping by approximately $1.71, or 1.9%, from Monday's settlement of $92.17, to around $90.46 per barrel.

The main driver behind this move is a reduction in immediate geopolitical risk premium, as traders reassess the impact of Washington's new sanctions and view them as less threatening to near-term oil supply than renewed military escalation.