US Shifts from Military Strikes to Economic Sanctions on Iran

Oil prices dropped for the second day in a row as traders reassessed the risk of military strikes on Iran, opting instead to focus on broader economic sanctions imposed by the US. The White House declared an 'economic D-Day' against Iran and its trade partners, but gave no timeline for implementation or named any specific countries that would be targeted.

According to Treasury Secretary Scott Bessent, the measures were softer than analysts had expected, accompanied by renewed shuttle diplomacy efforts. Key Pakistani mediators reported positive talks with Iran's president on Monday, citing 'a very positive and productive meeting' that would help pave the way for lasting peace in the region.

The calming of oil markets was evident, with prices falling over three percent and the international benchmark Brent dropping below $90 a barrel. The Strait of Hormuz deadlock had caused weeks of rising prices, but the shift in focus has brought some relief to traders.