SINGAPORE / RankWire.AI / – Oil prices increased on Tuesday after both primary crude benchmarks experienced declines exceeding 2% the previous day. By 0330 GMT, Brent crude had risen by 27 cents to $92.44 a barrel, while U.S. West Texas Intermediate gained 37 cents to $85.38. This upward move followed a six-day rally that concluded with a broad market correction in energy assets on Monday.
Brent closed Monday at $92.17 a barrel, down $2.22, or 2.35%, from the prior session. Similarly, WTI ended at $85.01 after a $2.05 drop, also representing a 2.35% decline. During the trading session, the U.S. benchmark touched its lowest point in a week. Prices had previously risen over the last two weeks before reversing course due to new U.S. measures related to Iran, which the markets are digesting.
The oil trading landscape continues to be dominated by concerns over supply disruptions linked to the ongoing conflict involving the United States, Israel, and Iran. Since the conflict’s onset on February 28, regional energy trade has experienced interruptions, including shipping restrictions through the Strait of Hormuz. Prior to these tensions, roughly 20% of global oil consumption was transported via this strategic waterway.
U.S. ramps up sanctions targeting Iran’s economy
U.S. Department of the Treasury launched Operation Economic Outcast on Monday, expanding sanctions on Iran-related commercial ventures. The new measures target digital assets, technology, gold, aviation, and shipping sectors. Nearly 60 entities, individuals, and vessels across various jurisdictions were also sanctioned. The sanctions encompass networks connected to Iranian oil transport and revenue, as well as organizations involved in nuclear procurement, missile development, and cyber activities.
This updated framework enables U.S. authorities to target foreign entities operating within or supporting five specified sectors of Iran’s economy. Countries are given specific timelines to address activities falling under these new restrictions. Already, existing U.S. sanctions cover Iran’s petroleum and petrochemical industries. Following the announcement, Brent and WTI prices declined, ending a six-session series of gains.
Supply chain risks grow as U.S. oil reserves shrink
On Tuesday, maritime security issues remained prominent in the market outlook. United Kingdom Maritime Trade Operations reported an unidentified projectile striking and disabling an oil tanker near Oman, approximately 9 nautical miles northeast of Ash Shishah. Iran also flagged 45 tankers it claims violated crossing regulations through the Strait of Hormuz, warning of potential actions against those vessels.
Meanwhile, U.S. emergency crude stocks have decreased amid ongoing supply constraints. The Department of Energy reported a weekly reduction of roughly 3.7 million barrels in the Strategic Petroleum Reserve, which now stands at 289.7 million barrels—the lowest since November 1982. Early Tuesday, Brent traded at $92.44, with WTI at $85.38 after recouping some of Monday’s losses, reflecting ongoing supply tensions and market uncertainty.