Oil: price falls below $90 following US sanctions plan against Iran; Brent down 3 per cent to $89.4
Investors relieved that the situation has not escalated militarily
(Il Sole 24 Ore Radiocor) - Oil prices have slipped to their lowest level in a week, with investors believing that the new economic offensive launched by the US against Iran poses a lesser risk to supplies than a feared military escalation. Brent futures have thus fallen by 3.01 per cent, dropping below the psychological threshold of $90 a barrel to $89.40 a barrel, whilst WTI futures have fallen by 3 per cent to $82.46 a barrel.
"The shift from military conflict to economic pressure in the war between the United States, Israel and Iran has gone some way towards easing anxiety in the oil market," explain the experts at Saxo Bank. Furthermore, the announcement of US sanctions by Treasury Secretary Scott Bessent was not as severe as some traders had expected and has partly allayed fears regarding further threats to oil supplies from the Middle East. This is despite the fact that traffic through the Strait of Hormuz – which is crucial for the transit of crude oil – remains largely blocked.
Cog
