US Shifts from Military Action to Economic Pressure Sends Oil Prices Plummeting

Oil prices plummeted on Wednesday as tensions between the US and Iran eased. The shift away from military action reduced the perceived risk to Gulf supply, said Paolo Broccardo, BankPro's chief executive officer.

The US has opted for economic sanctions over military intervention, a move that was less severe than anticipated, according to Dan Coatsworth, head of markets at AJ Bell.

International benchmark Brent crude futures for October delivery dropped 2.52% to $86.35 a barrel, while U.S. West Texas Intermediate futures for October fell 2.17% to $80.56 per barrel.