(RTTNews) – Oil prices were sharply lower on Tuesday, extending losses from the previous session as traders assessed the potential impact of Washington’s sweeping new sanctions campaign against Iran.
Brent crude futures fell 2.5 percent to $88.32 a barrel, after having fallen more than 2 percent on Monday to snap a six-day winning streak. WTI crude futures were down 2.8 percent at $82.66 a barrel.
Investors are preparing for the possibility of a prolonged escalation in tensions between Washington and Tehran after U.S. Treasury Secretary Scott Bessent announced a wave of new sanctions to isolate the Iranian regime and warned that countries and companies that help Iran move or hide money could face U.S. actions and potentially lose access to the U.S. dollar system.
That said, enforcement details of the new measures remained sketchy. The Treasury Department stopped short of imposing any penalties, helping ease fears over potential disruption to near-term crude flows.
Iran brushed off the U.S. threats and expressed confidence that its major trading partners would not yield to pressure from Washington.
While Iranian Parliament Speaker Mohammad Bagher Ghalibaf mocked Donald Trump with a “Make America Hungry Again” remark, Economy Minister Ali Madanizadeh said Tehran is “fully prepared” to counter sanctions.
China vowed to take all necessary measures to firmly safeguard its own rights and interests.
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