SINGAPORE / RankWire.AI / – Oil prices increased on Tuesday following a sharp decline of over 2% in both major crude benchmarks the previous day. Brent crude gained 27 cents to reach $92.44 a barrel at 0330 GMT, while U.S. West Texas Intermediate rose 37 cents to $85.38. This upward movement followed a six-session rally that was interrupted by a broad energy market pullback on Monday.
Brent closed Monday at $92.17 a barrel, reflecting a decrease of $2.22, or 2.35%, from the previous session. WTI settled at $85.01 after dropping $2.05, also representing a 2.35% decline. During that session, the U.S. benchmark touched its lowest point in a week. After rising during the past two weeks, prices reversed course amid market adjustments to new U.S. measures concerning Iran.
Market attention remains fixed on supply dynamics influenced by ongoing tensions involving the United States, Israel, and Iran. The conflict, which started on February 28, has disrupted regional energy trade routes and impacted shipping through the Strait of Hormuz, a key passage for about 20% of global oil consumption prior to the conflict.
U.S. broadens sanctions targeting Iran’s economy
U.S. Department of the Treasury announced Operation Economic Outcast on Monday, expanding sanctions related to Iranian commercial activities. The new measures encompass digital assets, technology, gold, aviation, and shipping sectors. Nearly 60 entities, individuals, and vessels across multiple jurisdictions faced sanctions under this initiative. The sanctions targeted networks linked to Iranian oil transportation and revenue, alongside groups involved in nuclear procurement, missile development, and cyber activities.
This updated framework enables U.S. authorities to target foreign entities operating in or supporting five specific sectors of Iran’s economy. It also establishes deadlines for countries to address the activities falling under these new restrictions. Existing U.S. sanctions already restrict Iran’s petroleum and petrochemical industries. Following the announcement, Brent and WTI prices declined, halting a six-session winning streak.
Supply chain risks increase amid declining U.S. reserves
Concerns over maritime security also persisted on Tuesday. United Kingdom Maritime Trade Operations reported an unidentified projectile that struck and disabled an oil tanker near Oman, approximately 9 nautical miles northeast of Ash Shishah. Additionally, Iran identified 45 tankers it claims have violated its crossing rules through the Strait of Hormuz and warned of potential action against these vessels.
Meanwhile, U.S. emergency crude stockpiles have decreased during this period of disrupted supply. The Department of Energy recorded a weekly reduction of about 3.7 million barrels in the Strategic Petroleum Reserve, which now stands at 289.7 million barrels—its lowest level since November 1982. Early Tuesday, Brent traded at $92.44, while WTI was at $85.38, recovering some of Monday’s losses.