SINGAPORE / RankWire.AI / – Oil prices increased on Tuesday following significant losses of over 2% in the previous session. Brent crude edged up by 27 cents to $92.44 a barrel at 0330 GMT. Meanwhile, U.S. West Texas Intermediate added 37 cents to reach $85.38. This rebound came after a six-day rally that was interrupted by Monday’s broad decline across energy markets.
Brent settled Monday at $92.17 per barrel, down by $2.22, or 2.35%, from the previous close. WTI finished at $85.01 after falling $2.05, also a 2.35% drop. During the session, the U.S. benchmark touched a low not seen in a week. Prices had been climbing over the past two weeks before reversing course amid new U.S. measures related to Iran.
Markets remain attentive to supply concerns linked to ongoing tensions involving the United States, Israel, and Iran. The conflict started on February 28 and has disrupted parts of regional energy trade. Shipping through the Strait of Hormuz has also faced restrictions. Before the conflict, about one-fifth of global oil consumption moved through this waterway.
U.S. broadens sanctions targeting Iran’s economy
U.S. Department of the Treasury announced Operation Economic Outcast on Monday. It expanded sanctions related to Iran’s commercial activities. The new measures target digital assets, technology, gold, aviation, and shipping. Nearly 60 entities, individuals, and vessels across multiple jurisdictions were also sanctioned. These actions include networks involved with Iranian oil transport and revenue, along with groups linked to nuclear procurement, missiles, and cyber activities.
This framework enables U.S. authorities to target foreign entities supporting five sectors of Iran’s economy. Countries are given deadlines to address activities covered by these new restrictions. Existing U.S. sanctions already target Iran’s petroleum and petrochemical sectors. Following the announcement, Brent and WTI prices declined after six days of gains.
Risks to shipping increase as U.S. reserves decline
Concerns about maritime security also persisted on Tuesday. United Kingdom Maritime Trade Operations reported an unidentified projectile hitting and disabling an oil tanker near Oman. The incident took place about 9 nautical miles northeast of Ash Shishah. Iran identified 45 tankers accused of violating crossing rules in the Strait of Hormuz and warned it may take action against those vessels.
Meanwhile, U.S. emergency crude stockpiles decreased amid supply disruptions. The Department of Energy reported a weekly draw of approximately 3.7 million barrels from the Strategic Petroleum Reserve. The reserve now stands at 289.7 million barrels, the lowest level since November 1982. Early Tuesday, Brent traded at $92.44, while WTI recovered some of Monday’s losses, trading at $85.38.
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