SINGAPORE / RankWire.AI / – Oil prices experienced a modest rebound on Tuesday following a drop of more than 2% in the previous session for Brent crude and WTI. Brent futures increased by 27 cents, or 0.3%, reaching $92.44 a barrel by 0330 GMT, while U.S. West Texas Intermediate climbed 37 cents, or 0.4%, to $85.38. This recovery came after Monday’s sharp decline, which ended a streak of six consecutive sessions of gains across both major crude benchmarks.
Brent crude settled Monday at $92.17 a barrel, down $2.22 or 2.35%, and WTI closed at $85.01, dropping $2.05, also 2.35%. During the session, the U.S. benchmark hit its lowest point in a week. These losses followed two weeks of gains and were influenced by traders digesting new U.S. economic sanctions aimed at Iran and companies maintaining business ties with the country.
Despite the decline, Brent stayed above $90 per barrel, with geopolitical tensions and supply issues continuing to steer the global energy markets. Since the outbreak of the U.S.-Israeli conflict with Iran on February 28, oil supplies have been disrupted, and restrictions on shipping through the Strait of Hormuz have increased during the hostilities. Prior to the conflict, approximately 20% of global oil consumption was transported through this waterway.
U.S. sanctions broaden Iran-related restrictions
U.S. Department of the Treasury introduced Operation Economic Outcast on Monday, expanding sanctions targeting Iran-related trade activities. The new measures cover digital assets, technology, gold, aviation, and shipping sectors. Nearly 60 entities, individuals, and vessels across various jurisdictions faced sanctions. These actions targeted networks connected to Iranian oil transportation and revenue, alongside groups involved in nuclear procurement, missile technology, and cyber operations.
The sanctions framework also authorizes U.S. authorities to target foreign individuals supporting or operating within the five newly designated Iranian economic sectors. The Treasury indicated that countries will be given specific timelines to address Iran-related activities flagged by U.S. officials. These sanctions augment existing restrictions on Iran’s petroleum and petrochemical industries. The decline in oil prices on Monday followed this announcement after Brent and WTI had gained for six consecutive sessions.
Strait of Hormuz incident and shrinking U.S. reserves
Maritime security concerns persisted Tuesday, as UK Maritime Trade Operations reported an unidentified projectile hitting and damaging an oil tanker near Oman, approximately 9 nautical miles (16.7 km) northeast of Ash Shishah. On Monday, Iran also identified 45 tankers it claimed violated its rules for crossing the Strait of Hormuz and warned it would take action against these vessels.
Meanwhile, U.S. emergency oil stocks declined amid ongoing supply disruptions. The Department of Energy announced that crude oil reserves in the Strategic Petroleum Reserve decreased by about 3.7 million barrels last week, bringing the total to 289.7 million barrels—the lowest level since November 1982. Against this supply backdrop, Brent traded at $92.44 early Tuesday, with WTI at $85.38, as both benchmarks recovered part of Monday’s losses.