New York — Oil prices dropped as much as 3.5% on Tuesday as traders sold off on a CNN report that sparked doubts about whether US President Donald Trump would impose sanctions on Iran as quickly as the market had expected, a decision that would reduce global crude supplies and feed tensions in the Middle East. Prices fell sharply moments after CNN reported that Trump was expected to impose sanctions on Iran, but may also allow for "a grace period that may offer the deal’s proponents an opening to negotiate". Prices had been supported by expectations that Trump would likely pull the US out of the deal. This could hit Iranian crude exports and also fan the flames of geopolitical tensions in the Middle East, home to a third of the world’s daily oil supply. Prices dropped $3 a barrel as the market reacted to the CNN report, traders said. They later retraced some of those losses. "It’s a huge development, and certainly counter to what everyone expected in the market. This reduces the tem...
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