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Oil dips as US sanctions Iran

Oil dips as US sanctions Iran

Oil prices fell by more than 3% today, Tuesday, as the United States shifted from considering military strikes to imposing economic sanctions on Iran in an effort to pressure Tehran. Brent crude declined by 3.9%, closing at $88.58 per barrel, while US West Texas Intermediate (WTI) fell by 3.1% to $82.36 per barrel. This came after the US government announced a new wave of sanctions targeting entities dealing with Iran, leading to a drop in oil prices of over 5% during the week. The White House emphasized that the focus remains on escalating economic measures to avoid returning to war, while Washington prepared to reopen diplomatic channels in the region. Meanwhile, the US Navy informed Iran that mines in the Strait of Hormuz had been cleared but warned that military force could still be used if necessary, despite Iran's resistance to sanctions and its declaration of readiness to withstand further pressure.

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