00:00Oil prices settled down more than 3% on Tuesday at a one-week low as traders struck of the
00:05latest U.S. sanctions campaign against Iran,
00:08viewing economic pressure less risky for all supplies than a military escalation.
00:13Brent crude futures settled down $3.59 or 3.9% at $88.58 a barrel, the lowest since August
00:2114.
00:21U.S.-West Texas Intermediate Crude futures fell $2.65 or 3.1% to settle at $82.36, the lowest
00:30since August 13.
00:35The shift from military conflict to economic pressure in the U.S.-Israeli war with Iran has reduced some of the
00:42oil market's anxiety,
00:43said Saxo Bank Head of Commodity Strategy Oli Hansen, adding the U.S. sanctions announcement was not as forceful as
00:50some traders expected.
00:51Treasury Secretary Scott Bassan availed the measures on Monday, almost six months into the war.
00:57He declined to identify countries targeted or see when penalties would take effect, adding he would give countries time to
01:04comply.
01:05The economic pressure campaign has revived expectations of talks between the U.S. and Iran to resolve their conflict,
01:11which began when the U.S. and Israel launched military strikes on Tehran at the end of February,
01:17All Trading Advisor Richard Bush and Associates said.
01:20There have been signals of a potential return to mediation to end the war.
01:24Iran and Oman said they had discussed a proposal on Tuesday for a joint temporary navigational corridor
01:30through the Strait of Hormuz and a plan to clear the Strait of Mainz.
01:35Still, Tuesday's sharp decline in oil prices appears to be an overreaction by market participants,
01:40Rita Bush and Associates said.
01:43They cautioned traders that the market could swing sharply higher if Iran unleashes military strikes on U.S. installations in
01:50the Middle East.
01:51Iran has vowed to retaliate against the U.S. sanctions and expressed confidence that major trading partners would resist Washington's
01:59pressure campaign.
02:00China, the largest buyer of Iranian oil said on Tuesday its cooperation with Iran was conducted within the framework of
02:07international law and should not be interfered with.
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