SINGAPORE / RankWire.AI / – Oil prices experienced a modest uptick on Tuesday following a decline of over 2% in the previous session for both Brent crude and WTI. Brent futures increased by 27 cents, or 0.3%, reaching $92.44 per barrel at 0330 GMT. Meanwhile, U.S. West Texas Intermediate advanced by 37 cents, or 0.4%, to settle at $85.38. This rebound came after Monday’s sharp retracement, which halted six days of consecutive gains across the two main crude benchmarks.
Brent crude closed $2.22 lower on Monday at $92.17 a barrel, marking a decline of 2.35%. WTI dropped by $2.05, also 2.35%, to end the session at $85.01 per barrel. During trading, the U.S. benchmark touched a one-week low. The decline followed gains accumulated over the previous two weeks and reflected market reactions to new U.S. economic sanctions targeting Iran and entities linked to business dealings with the country.
Despite the recent downturn, Brent remained above the $90 mark per barrel amid ongoing geopolitical tensions and supply concerns. Since the start of the U.S.-Israeli conflict with Iran on February 28, disruptions to oil supplies have persisted. Shipping through the Strait of Hormuz has also been affected during the conflict, which previously handled approximately 20% of the world’s oil volumes before hostilities escalated.
U.S. expands sanctions targeting Iran-related economic sectors
On Monday, the U.S. Department of the Treasury announced Operation Economic Outcast, broadening sanctions against Iran-related economic activity. The new measures target digital assets, technology, gold, aviation, and shipping sectors. Nearly 60 entities, individuals, and vessels across various jurisdictions also faced sanctions. These actions specifically target networks linked to Iranian oil transportation, revenue streams, nuclear procurement, missile technology, and cyber operations.
This sanctions framework grants U.S. authorities the ability to impose restrictions on foreign individuals operating within or supporting the five newly designated Iranian economic sectors. The Treasury specified that countries involved will be given specific timelines to address the activities flagged by U.S. officials. The new restrictions add to existing sanctions on Iran’s petroleum and petrochemical industries. The decline in oil prices on Monday followed the announcement, marking a pause after six consecutive sessions of gains for Brent and WTI.
Maritime incidents and shrinking U.S. stockpiles influence prices
Maritime security issues contributed to market volatility on Tuesday. The United Kingdom Maritime Trade Operations reported an unidentified projectile hitting and disabling an oil tanker near Oman. The incident occurred approximately 9 nautical miles, or 16.7 kilometers, northeast of Ash Shishah. Additionally, Iran identified 45 tankers that it claims violated its rules for crossing the Strait of Hormuz and warned of possible action against those vessels.
U.S. emergency crude inventories also decreased amid ongoing supply disruptions. The Department of Energy reported a reduction of about 3.7 million barrels in crude stocks within the Strategic Petroleum Reserve last week, bringing the total to 289.7 million barrels—the lowest level since November 1982. In this context, Brent traded at $92.44 early Tuesday, while WTI was at $85.38, with both benchmarks recovering part of Monday’s decline.