Oil down as traders weigh US sanctions threat against Iran

Oil prices plunged for a second consecutive day on Tuesday, as traders assessed the diminished risk of military conflict with Iran. The United States announced economic sanctions, but did not specify targets or timelines. Pakistan's Interior Minister conveyed optimism about ongoing negotiations with Iran. Brent and WTI crude futures fell more than 3%, breaching the $90 and $82.50 thresholds, respectively.

Wall Street equities concluded the session marginally higher. Stock market gains appeared indifferent to the US-Canada trade dispute, which saw Canada retaliate with tariffs on an expanded range of US commodities. European markets rebounded, with German data signaling stronger-than-anticipated second-quarter growth. Investors remain focused on Nvidia's upcoming earnings report, highlighting the sector's sensitivity to AI market dynamics.

Central bankers gathered at the Jackson Hole conference, where Federal Reserve Chair Kevin Warsh is expected to provide insights into monetary policy amidst persistently high inflation levels.