Oil falls as U.S. turns to sanctions over strikes on Iran

Oil prices fell Wednesday as investors assessed the U.S. shift toward economic sanctions rather than military strikes to pressure Iran, easing concerns about potential conflict. Brent crude futures for October dropped 2.52% to $86.35 a barrel, while West Texas Intermediate fell 2.17% to $80.56. Analysts noted sanctions were less severe than anticipated, helping markets regain poise as bond yields eased. The reduced military threat lowered perceived risks to Gulf supply, though other interventions weren't ruled out. Pakistan reported progress on de-escalation talks for Strait of Hormuz navigation, while Iran and Oman discussed a temporary shipping route and clearing mission.