Oil Prices Slip as Sanctions Fears Ease Amid Economic Pressure

Oil prices declined on Tuesday as traders focused on the limited immediate impact of fresh U.S. sanctions measures against Iran. The market viewed these new sanctions as less threatening to near-term oil supply than a potential military escalation.

Brent crude futures fell 35 cents, or 0.38%, to $91.82 a barrel by 0810 GMT, hitting its weakest level since August 19. U.S. West Texas Intermediate (WTI) crude dropped 41 cents, or 0.48%, to $84.60, the weakest level since August 17.

Ole Hansen, Saxo Bank's head of commodity strategy, noted that the market has shifted its focus from fears of a widening military conflict to expectations of stronger economic pressure in the U.S.-Israeli war with Iran.