SINGAPORE / RankWire.AI / – Oil prices increased on Tuesday after both primary crude benchmarks experienced declines exceeding 2% the day before. Brent crude edged up 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 widespread pullback in energy markets on Monday.
Brent finished Monday at $92.17 a barrel, down $2.22, or 2.35%, from the previous close. WTI settled at $85.01 after dropping $2.05, also reflecting a 2.35% decrease. During the trading session, the U.S. benchmark touched its lowest point in a week. Prices had been rising over the prior two weeks before reversing course as markets absorbed new U.S. sanctions measures linked to Iran.
Focus in oil markets continues to center on supply conditions influenced by the ongoing conflict involving the United States, Israel, and Iran. Initiated on February 28, the conflict has disrupted parts of regional energy trade routes. Additionally, shipping through the Strait of Hormuz has been impacted. Prior to the conflict, approximately 20% of global oil consumption was transported through this waterway.
U.S. Broadens Sanctions Targeting Iran’s Economy
U.S. Department of the Treasury announced Operation Economic Outcast on Monday, expanding sanctions against Iran-related commercial activities. The new measures target digital assets, technology, gold, aviation, and shipping sectors. Nearly 60 entities, individuals, and vessels across various jurisdictions have been sanctioned. The sanctions include entities involved in Iranian oil transportation, revenue, nuclear procurement, missile development, and cyber operations.
This new framework enables U.S. authorities to target foreign entities operating in or supporting five specific sectors of Iran’s economy. Governments have been given deadlines to address activities covered by these restrictions. Existing U.S. sanctions already affect Iran’s petroleum and petrochemical industries. Following the announcement, Brent and WTI prices declined, ending a six-day streak of gains.
Shipping Hazards Increase as U.S. Oil Reserves Diminish
Concerns over maritime security persisted on Tuesday. 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. Iran also identified 45 tankers accused of violating crossing rules in the Strait of Hormuz and warned of actions against those vessels.
Meanwhile, U.S. emergency crude inventories have fallen amid ongoing supply disruptions. The Department of Energy reported a weekly decrease of around 3.7 million barrels in the Strategic Petroleum Reserve, which now stands at 289.7 million barrels—the lowest level since November 1982. Brent traded at $92.44 early Tuesday, while WTI recovered part of Monday’s losses, trading at $85.38.