Oil drops to 12-day low after US tightens sanctions on Iran
What's new: Brent settled at $88.58 and WTI at $82.36 as Washington signaled economic pressure over new military strikes.
Oil prices fell sharply after the United States rolled out new sanctions on Iran and traders bet Washington would lean on economic pressure rather than immediate military action. Brent crude dropped 3.9% to settle at $88.58 a barrel, while US West Texas Intermediate lost 3.1% to $82.36, a 12-day low. Prices are down more than 5% this week after last week's rally tied to fears of supply disruption in the Strait of Hormuz. Treasury Secretary Scott Bessent has framed the campaign as a major financial offensive, while President Donald Trump said mines in international waters in Hormuz had been cleared. Iranian Economy Minister Ali Madanizadeh said Tehran had a two-year plan to withstand tighter sanctions.