FX.co ★ Oil Holds Decline as US Tightens Iran Sanctions

Crude oil hovered near $85 per barrel on Tuesday after sliding more than 2% in the previous session, as the US ramped up economic pressure on Iran and its trading partners in a bid to force the reopening of the Strait of Hormuz. Treasury Secretary Scott Bessent outlined plans to further isolate Iran via sanctions aimed at countries that continue commercial dealings with the Islamic Republic, while President Donald Trump said those nations would be given a defined deadline to cut ties with Tehran or face unilateral US penalties. Still, markets remain unsure whether the US actions will speed up or instead prolong any potential resolution of the US-Iran standoff and the full reopening of Hormuz. At the same time, risks to energy supplies in the Middle East remain elevated: the UK Navy reported that an oil tanker was struck and disabled near Oman, and Iran-backed Houthi militants said they had fired on a Saudi Arabian supertanker transiting the Red Sea.