Oil prices experienced a second consecutive day of decline Tuesday, reacting to diminished expectations of immediate US military intervention in Iran. This shift followed signals from Washington prioritizing economic pressure instead. Treasury Secretary Scott Bessent announced impending “economic D-Day” sanctions against Tehran, though specifics regarding implementation or targeted nations remain undisclosed. The market interpreted this announcement as decreasing the likelihood of escalating military conflict in the region, driving prices downwards. While the threat of significant economic penalties looms, the absence of a concrete timeline has introduced some market uncertainty. Experts suggest traders are cautiously optimistic that sanctions may de-escalate tensions. The situation remains fluid, contingent on Iran’s response and further US policy announcements.