Oil prices fall 3% as US shifts to Iran sanctions; Brent, WTI drop on Hormuz risks

Oil prices fell about 3% on Tuesday as the US shifted from military strikes to economic sanctions against Iran. Brent crude dropped 3.3% to $89.14 a barrel, while WTI fell 3.1% to $82.36. The White House described its new campaign as an "economic D-Day," with Treasury Secretary Scott Bessent calling it "the single greatest financial offensive ever." He said maximum economic pressure makes a large-scale war less likely. The State Department is preparing to return evacuated diplomats to the Middle East. President Trump said the Navy cleared all mines from international waters in the Strait of Hormuz, warning Iran against placing new ones. Iran says it is prepared for tougher sanctions, while China, which buys about 90% of Iran's oil exports, opposes the measures.