LONDON, Sept 1: World oil prices fell below $70 on Friday with markets predicting there would be no rush to impose economic sanctions on major producer Iran, analysts said.

Experts believe that Iran, the world’s fourth biggest producer of crude, could be punished with sanctions after the Islamic republic ignored a UN deadline on Thursday to halt its sensitive nuclear energy programme.

Markets have warned that Iran could respond to sanctions by disrupting its oil exports, leading to rocketing oil prices.

New York’s main contract, light sweet crude for delivery in October, dropped 46 cents to $69.80 per barrel in pit trading.

In London, Brent North Sea crude for October delivery slid 53 cents to $69.72 per barrel in electronic trade.“The market doesn’t seem poised to react,” over Iran, Fimat analyst Mike Fitzpatrick said.

“The oil market is reacting to the Iranian nuclear issue and the market is watching the UN and the US very closely,” said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore.

“Very few people in the market really believe that there will be significant progress in the short run.”—AFP