SINGAPORE / RankWire.AI / – Oil prices increased on Tuesday following a more than 2% decline in both major crude benchmarks the day before. Brent crude climbed 27 cents to $92.44 a barrel by 0330 GMT. U.S. West Texas Intermediate added 37 cents to $85.38. This rebound came after a six-session rally that concluded with Monday’s broad market pullback in energy assets.
Brent ended Monday at $92.17 per barrel, down $2.22, or 2.35%, compared to the previous close. WTI closed at $85.01 after a decrease of $2.05, also representing a 2.35% drop. During the session, the U.S. benchmark touched a one-week low. Prices had advanced over the prior two weeks before turning lower as markets digested new U.S. measures related to Iran.
Focus in oil markets remains on supply conditions linked to the ongoing conflict involving the United States, Israel, and Iran. The conflict, which began on February 28, has disrupted parts of the regional energy trade. Shipping through the Strait of Hormuz has also been impacted by restrictions, with pre-conflict volumes through the waterway accounting for about one-fifth of global oil consumption.
U.S. Implements Broader Economic Sanctions Against Iran
U.S. Department of the Treasury introduced Operation Economic Outcast on Monday, expanding 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 sanctioned. The sanctions target networks associated with Iranian oil transport and revenue, as well as groups linked to nuclear procurement, missile development, and cyber activities.
This new framework enables U.S. authorities to target foreign entities operating in or supporting five specified sectors of Iran’s economy. Governments are given deadlines to address activities covered by the new restrictions. Currently, U.S. measures already restrict Iran’s petroleum and petrochemical industries. Following this announcement, Brent and WTI prices declined, halting a six-day streak of gains.
Shipping Challenges Increase as U.S. Emergency Reserves Drop
Maritime security issues continued to influence the supply outlook on Tuesday. The United Kingdom Maritime Trade Operations reported that an unidentified projectile struck and damaged an oil tanker near Oman, about 9 nautical miles northeast of Ash Shishah. Iran also reported that 45 tankers had violated its regulations for crossing the Strait of Hormuz and warned of possible actions against those vessels.
Meanwhile, U.S. emergency crude stockpiles have decreased amid ongoing supply disruptions. The Department of Energy announced a weekly reduction of approximately 3.7 million barrels in the Strategic Petroleum Reserve, bringing it to 289.7 million barrels—its lowest level since November 1982. Early Tuesday, Brent traded at $92.44, while WTI was at $85.38 after recovering some of Monday’s losses.