Oil falls 2.4% despite new Iran sanctions; traders bet on temporary disruption

Despite the US widening Iran sanctions, WTI crude fell 2.4% to $85.01 and Brent dropped 2.4% to $92.17. Markets appear to price sanctions as lower-risk than kinetic conflict and expect temporary supply impact. However, Iran retains capacity to disrupt shipping; residual risk premium remains in oil. Watch for sudden repricing if conflict escalates.