Oil prices have fallen further after settling down more than 2 per cent in the previous session, with investors brushing off the impact of the latest US sanctions against Iran, Reuters reports.

Brent crude futures fell 90 cents, or 1.0pc, to $91.27 a barrel by 0630 GMT (11:30am PKT), while US West Texas Intermediate crude was down 76 cents, or 0.9pc, at $84.25.

“The market seems largely unfazed by Washington’s push for tighter economic pressure on Iran, with traders treating the US effort to nudge partners away from Iranian trade as marginal rather than market moving,” said ING commodity strategists in a note.

“Markets appear to be pricing economic pressure as a lower-risk path for physical supply than kinetic action, which is why the initial reaction was for oil to move lower rather than spike higher,” said Tim Waterer, chief market analyst at KCM.

However, he warned, “Iran still retains the ability to respond by disrupting shipping, which continues to keep a residual premium in the oil price.”