Oil falls on easing concerns of renewed tensions as the U.S. pivots to economic pressure on Iran

FILE PHOTO: Oil tankers pass through the Strait of Hormuz, December 21, 2018. Hamad I Mohammed | ReutersOil fell Wednesday, amid easing concerns about military conflict as the U.S. leans towards economic sanctions to pressure Iran.International benchmark Brent crude futures for October delivery declined 2.52% to $86.35 a barrel. U.S. West Texas Intermediate futures for October dropped 2.17% to $80.56 per barrel."US sanctions on Iran were less severe than anticipated," said Dan Coatsworth, head of markets at AJ Bell, adding that lower oil prices helped markets to regain some poise as government bond yields eased back from their recent highs. Stock Chart IconStock chart icon Brent The shift away from military action reduced the perceived risk to Gulf supply, even though the U.S. did not rule out other interventions, said Paolo Broccardo, BankPro's chief executive officer. In addition, Pakistan reported meaningful progress in talks aimed at de-escalation and restoring navigation through the Strait of Hormuz, Broccardo noted. Meanwhile, Iran and Oman were discussing a joint temporary shipping route in the Strait of Hormuz and mind clearing mission, a precursor to a permanent arrangemen...