SINGAPORE / RankWire.AI / – Oil prices experienced a modest rebound on Tuesday after both key crude benchmarks had fallen more than 2% the day before. Brent crude increased by 27 cents to reach $92.44 a barrel by 0330 GMT. Meanwhile, U.S. West Texas Intermediate gained 37 cents, closing at $85.38. This uptick followed a six-session rally that concluded with a broad market retreat in energy assets on Monday.
Brent closed Monday at $92.17 a barrel, down $2.22, or 2.35%, from the prior day’s close. WTI finished at $85.01 after falling $2.05, marking a 2.35% decrease. During trading, the U.S. benchmark reached its lowest point in a week. Prices had advanced over the previous two weeks before reversing course as markets digested new U.S. sanctions related to Iran.
In recent days, oil traders have remained attentive to supply dynamics influenced by the ongoing conflict involving the United States, Israel, and Iran. Since beginning on February 28, the conflict has disrupted certain regional energy flows. Additionally, shipping through the Strait of Hormuz has faced restrictions. Prior to these tensions, approximately one-fifth of global oil consumption was transported via this strategic waterway.
U.S. broadens economic sanctions targeting Iran
U.S. Department of the Treasury announced Operation Economic Outcast on Monday, expanding sanctions related to Iran’s commercial activities. The new measures target digital assets, technology, gold, aviation, and maritime shipping. Nearly 60 entities, individuals, and vessels across multiple jurisdictions were sanctioned. These actions target networks involved in Iranian oil transportation, revenue generation, as well as groups linked to nuclear procurement, missile development, and cyber activities.
The updated framework enables U.S. authorities to pursue foreign entities operating within or supporting five specific sectors of Iran’s economy. Authorities also set deadlines for countries to take corrective actions regarding activities covered by the new restrictions. Existing U.S. sanctions already apply to Iran’s petroleum and petrochemical sectors. Following the announcement, both Brent and WTI declined, ending a six-day streak of gains.
Shipping dangers intensify as U.S. reserves diminish
Oil markets continued to reflect shipping concerns on Tuesday. The United Kingdom Maritime Trade Operations reported that an unidentified projectile 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 crossing rules in the Strait of Hormuz and warned it may take action against these vessels.
In parallel, U.S. emergency crude inventories have decreased amid ongoing supply disruptions. The Department of Energy announced a weekly decline of roughly 3.7 million barrels in the Strategic Petroleum Reserve, reducing its total to 289.7 million barrels—the lowest since November 1982. Early Tuesday, Brent was trading at $92.44, while WTI recovered some of Monday’s losses, trading at $85.38.
}**