SINGAPORE / RankWire.AI / – Oil prices experienced an upward movement on Tuesday after both major crude benchmarks saw declines exceeding 2% the previous day. Brent crude increased by 27 cents to reach $92.44 a barrel by 0330 GMT. Meanwhile, U.S. West Texas Intermediate rose by 37 cents to $85.38. This recovery was prompted after a six-session rally that concluded with Monday’s widespread decline across energy markets.
Brent closed on Monday at $92.17 per barrel, marking a decrease of $2.22 or 2.35% from the previous close. WTI ended at $85.01, down $2.05, also representing a 2.35% drop. During trading, the U.S. benchmark touched its lowest point in a week. Prices had been climbing over the prior two weeks before reversing course as traders responded to new U.S. measures related to Iran.
Market attention remains fixed on supply dynamics influenced by ongoing conflicts involving the United States, Israel, and Iran. The conflict started on February 28 and has disrupted parts of the regional energy trade. Shipping through the Strait of Hormuz has also been affected, with restrictions in place. Before the conflict, oil transit through this strategic waterway accounted for about one-fifth of global consumption.
U.S. broadens economic sanctions targeting Iran
U.S. Department of the Treasury announced Operation Economic Outcast on Monday, expanding sanctions on Iran-related commercial activities. The new measures cover digital assets, technology, gold, aviation, and shipping sectors. Nearly 60 entities, individuals, and vessels across various jurisdictions also received sanctions. The targeted networks include those linked to Iranian oil transport and revenue, along with groups connected to nuclear procurement, missile development, and cyber activities.
This new policy framework enables U.S. authorities to impose sanctions on foreign entities that operate within, or support, five specific sectors of Iran’s economy. Officials have also established deadlines for countries to address activities under the scope of these restrictions. Existing U.S. sanctions already apply to Iran’s petroleum and petrochemical industries. Following this announcement, Brent and WTI declined, ending a six-day streak of gains.
Shipping threats increase as U.S. emergency stockpiles dwindle
Concerns over maritime security persisted on Tuesday. According to United Kingdom Maritime Trade Operations, 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 its crossing rules through the Strait of Hormuz, warning of possible action against those vessels.
Meanwhile, U.S. emergency crude reserves have decreased amid ongoing disruptions. The Department of Energy reported a weekly reduction of about 3.7 million barrels from the Strategic Petroleum Reserve, which now stands at 289.7 million barrels—the lowest level since November 1982. Early Tuesday, Brent traded at $92.44, while WTI was at $85.38 after partially recovering from Monday’s losses.