US Sanctions Fail to Move Oil Markets

Oil prices continued their decline on Tuesday, falling by over 1% as investors seemed unfazed by the latest US sanctions against Iran.

Brent crude futures dropped 90 cents to $91.27 a barrel, while US West Texas Intermediate crude fell by 76 cents to $84.25.

The market appears to be pricing economic pressure as a lower-risk path for physical supply than kinetic action, according to Tim Waterer, chief market analyst at KCM.

A significant concern remains the potential for Iran to disrupt shipping, which could keep a premium in the oil price.