Oil hits one-week low as investors shrug off US sanctions on Iran
Oil prices fell to a one-week low on Tuesday as traders shrugged off the latest United States (US) sanctions threat against Iran, viewing economic pressure as posing less risk to oil supplies than a military escalation.
The shift from an escalation in military conflict to economic pressure in the US-Israeli war with Iran has reduced some of the oil market’s anxiety, said Saxo Bank head of commodity strategy Ole Hansen, adding that the US sanctions announcement was not as forceful as the market had feared.
While US Defence Secretary Pete Hegseth said on Monday the US would not rule out using military force against Iran, Washington is turning towards more economic coercion, which analysts said removed concerns about further threats to Middle Eastern oil supply because of the war.
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