Oil prices hit 2-month lows as US downplays further Iran strikes

Oil prices plummeted to two-month lows on Tuesday as U.S. officials downplayed the need for further military action against Iran, reducing concerns of potential supply disruptions in the Middle East. Brent crude futures fell by $1.93, or 2.1%, to $90.64 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped by $1.44, or 1.7%, to $85.41. Both benchmarks were on track to record their lowest closes since August 28.

On Monday, both contracts had closed at their lowest level since August 31. U.S. Secretary of State Marco Rubio informed Group of Seven (G7) allies on Tuesday that the economic sanctions and naval blockade against Iran were proving highly effective, leading U.S. President Donald Trump to refrain from conducting major combat operations in Iran.

This assessment was made during a meeting in Paris, where Rubio addressed foreign ministers from the G7, which includes Britain, Canada, France, Germany, Italy, Japan, and the United States, along with the European Union.

President Trump indicated earlier in the week that he planned to postpone any new military strikes against Iran for the time being, following the ongoing sanctions and naval blockade.