SINGAPORE / RankWire.AI / – Oil prices increased on Tuesday following a day of significant losses in both key crude benchmarks, which each fell more than 2% the previous day. By 0330 GMT, Brent crude was up 27 cents at $92.44 per barrel, while U.S. West Texas Intermediate (WTI) added 37 cents to reach $85.38. This rebound followed a six-session rally that concluded with Monday’s broad decline across energy markets.
Brent settled on Monday at $92.17 a barrel, a decrease of $2.22, or 2.35%, from the previous close. WTI ended at $85.01 after dropping $2.05, also a 2.35% decline. During the session, the U.S. benchmark dipped to a one-week low. Prices had gained during the prior two weeks but reversed course as markets digested new U.S. measures related to Iran.
Focus remains on supply factors connected to ongoing tensions involving the United States, Israel, and Iran. Since the conflict began on February 28, regional energy trade has been impacted, and shipping through the Strait of Hormuz has faced restrictions. Before the conflict, the Strait accounted for roughly 20% of global oil movement.
U.S. Enhances Sanctions Targeting Iran’s Economy
The U.S. Department of the Treasury announced Operation Economic Outcast on Monday, expanding sanctions on Iran-related commercial activities. The measures cover digital assets, technology, gold, aviation, and shipping. Nearly 60 entities, individuals, and vessels across multiple jurisdictions were sanctioned. The new restrictions target networks involved in Iranian oil transportation and revenue, as well as groups linked to nuclear procurement, missile development, and cyber activities.
This updated framework enables U.S. authorities to target foreign entities that operate within or support five specific sectors of Iran’s economy. Officials have also established deadlines for countries to address activities falling under the new restrictions. Already, U.S. measures restrict Iran’s petroleum and petrochemical sectors. Following the announcement, Brent and WTI declined, ending a six-day streak of gains.
Concerns Over Shipping Risks Rise as U.S. Reserves Decrease
Tuesday’s supply concerns are compounded by security issues at sea. The United Kingdom Maritime Trade Operations reported an unidentified projectile hit and disabled an oil tanker near Oman, approximately 9 nautical miles northeast of Ash Shishah. Additionally, Iran identified 45 tankers it claims violated crossing rules in the Strait of Hormuz and warned of actions against these vessels.
Meanwhile, U.S. emergency crude stockpiles have diminished amid ongoing supply disruptions. The Department of Energy announced a weekly reduction of about 3.7 million barrels in the Strategic Petroleum Reserve, bringing it down to 289.7 million barrels — the lowest since November 1982. Brent traded at $92.44 early Tuesday, and WTI stood at $85.38, recovering some of Monday’s losses.