Oil prices slide 2% to two-month low

NEWYORK:

Oil prices slid about 2% to fresh two-month lows on Tuesday after US officials downplayed the need for additional military action against Iran, easing fears of further Middle East supply disruptions.

Brent futures fell $1.93, or 2.1%, to $90.64 a barrel at 1528 GMT, while US WTI crude fell $1.44, or 1.7%, to $85.41. That put both crude benchmarks on track for their lowest close since August 28. On Monday, both contracts closed at their lowest since August 31.

US Secretary of State Marco Rubio said on Tuesday that he told Group of Seven allies that the US economic sanctions and naval blockade were working so well that President Donald Trump did not need to conduct major combat operations in Iran. Rubio made the comments during a meeting in Paris of foreign ministers from the G7.

On Monday, Trump said he plans to hold off on new military strikes against Iran for the time being after appeals from countries in the region, including from Qatar's prime minister in White House talks.