Oil hits one-week low as investors shrug off US sanctions on Iran

Oil prices slipped more than 3 per cent to a one-week low on Tuesday, according to The Express Tribune, as traders looked past fresh American sanctions aimed at Iran. Brent crude futures dropped $2.96 to $89.21 a barrel by 0957 GMT, while West Texas Intermediate fell $2.84 to $82.17. Both benchmarks reached their weakest levels since August 17.

Traders seemed to see the economic measures announced by Treasury Secretary Scott Bessent on Monday as a smaller threat to supply than a military escalation. Bessent did not name the targeted countries or say when penalties would begin, and he gave them time to comply. Tehran promised to hit back and felt sure its key commercial partners would stand firm against the pressure.

Analysts said the shift toward economic pressure had eased some worries about Middle Eastern supply, yet the Strait of Hormuz is still largely shut and only two tankers crossed it on Monday. An oil tanker was disabled by a projectile near Oman on Tuesday, while a Russian refinery suspended operations after a drone strike and a fire hit a Kazakh refinery.