US Sanctions Target Iran Entities Amid Oil Price Drops

Oil prices declined amid new U.S. sanctions targeting Iran and the ongoing Israel-Iran conflict, as President Donald Trump signaled openness to diplomacy, providing the market some relief. Trump stated he would decide within two weeks whether the U.S. would become involved in the conflict, raising hopes for a negotiated agreement and tempering fears of immediate military escalation. Despite this, tensions remain high with active strikes between Israel and Iran and Iran's firm stance on nuclear enrichment negotiations, leading to continued volatility in oil markets. The strategic importance of the Strait of Hormuz, through which a significant portion of global oil is transported, sustains concerns over potential supply disruptions. European diplomats are engaging with Iran, reflecting a broader international effort to manage the crisis diplomatically. Market analysts caution that the situation remains fragile, with the possibility of rapid escalation still looming.