Oil settles down more than 3pc

Oil prices fell more than 3 percent on Tuesday to a one-week low, according to Business Recorder, as traders looked past fresh US sanctions against Iran. Brent crude closed USD 3.59 lower, or 3.9 percent, at USD 88.58 a barrel, its weakest level since August 14. US West Texas Intermediate ended USD 2.65 down at USD 82.36, the lowest since August 13.

Treasury Secretary Scott Bessent announced the measures on Monday, but did not name the targeted countries or say when penalties would apply, and he said countries would be given time to comply. Saxo Bank's Ole Hansen said the shift from military conflict to economic pressure had eased some market anxiety, while the announcement fell short of what some traders had expected. Ritterbusch and Associates said the pressure campaign had revived hopes of talks between Washington and Tehran.

Ritterbusch and Associates nonetheless described Tuesday's sharp fall as an overreaction, warning that prices could swing higher if Iran strikes US installations in the Middle East. Iran and Oman also discussed a proposed temporary navigational corridor through Hormuz on Tuesday. An oil tanker was disabled by an unidentified projectile near Oman's Ash Shishah, and only two tankers passed through Hormuz on Monday, the fewest since early May.