Oil prices fell to a one-week low on Tuesday as traders shrugged off the latest US sanctions threat against Iran, viewing economic pressure as posing less risk to oil supplies than a military escalation.
Brent crude futures fell 35 cents, or 0.38 percent, to $91.82 a barrel by 0810 GMT, while US West Texas Intermediate crude was down 41 cents, or 0.48 percent, at $84.60.
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Brent crude fell to its lowest level since August 19, while US West Texas Intermediate touched its weakest level since August 17.
The shift from an escalation in military conflict to economic pressure in the US-Israeli war with Iran has reduced some of the oil market’s anxiety, said Saxo Bank head of commodity strategy Ole Hansen, adding that the US sanctions announcement was not as forceful as the market had feared.
