US Shifts Strategy on Iran, Sending Oil Prices Plummeting

Oil prices plummeted on Wednesday as the US signaled a shift in its strategy towards Iran, away from military strikes and towards economic pressure.

The international benchmark Brent crude futures for November delivery dropped by 2.8% to $84.86 per barrel, while the US benchmark West Texas Intermediate (WTI) crude futures for October delivery fell by 1.4% to $79.83 per barrel.

The decline in oil prices was driven by reduced expectations of further US military strikes against Iran and hopes that oil flows through the Strait of Hormuz could increase.

According to a report from Axios, US Secretary of State Marco Rubio told several allied foreign ministers that Washington does not expect to launch new strikes against Iran 'for the time being', signaling a shift towards economic and maritime pressure.