SINGAPORE / RankWire.AI / – Oil prices increased on Tuesday following a significant drop of more than 2% in both major crude benchmarks a day earlier. Brent crude edged up by 27 cents to reach $92.44 a barrel at 0330 GMT, while U.S. West Texas Intermediate (WTI) gained 37 cents, closing at $85.38. This upward movement followed a six-session rally that concluded with Monday’s broad decline across energy markets.
Brent closed Monday at $92.17 a barrel, reflecting a decrease of $2.22, or 2.35%, compared to the previous session. Meanwhile, WTI ended at $85.01 after falling by $2.05, also a 2.35% decline. During Monday’s trading, the U.S. benchmark touched a one-week low. Prices had been climbing over the past two weeks before reversing course as markets absorbed new U.S. sanctions measures related to Iran.
Market focus remains on supply factors influenced by the ongoing conflict involving the United States, Israel, and Iran. The conflict, which started on February 28, has disrupted regional energy trade routes, including shipping through the Strait of Hormuz. Before the outbreak of hostilities, approximately one-fifth of global oil consumption was transported via this waterway.
U.S. expands sanctions targeting Iran’s economy
The U.S. Department of the Treasury launched Operation Economic Outcast on Monday, extending sanctions to cover Iran-related commercial activities. The new measures target digital assets, technology, gold, aviation, and shipping sectors. Nearly 60 entities, individuals, and vessels across multiple jurisdictions have been sanctioned. These actions include networks associated with Iranian oil transportation and revenue, as well as groups involved in nuclear procurement, missile development, and cyber activities.
This new framework empowers U.S. authorities to target foreign entities operating in or supporting five specific sectors of Iran’s economy. Countries are given set deadlines to address activities falling under these restrictions. Existing U.S. sanctions already restrict Iran’s petroleum and petrochemical industries. Following the announcement, Brent and WTI prices declined after six consecutive days of gains.
Maritime security concerns increase amid declining U.S. crude reserves
Tuesday’s supply outlook was further complicated by ongoing maritime risks. The United Kingdom Maritime Trade Operations reported that an unidentified projectile struck and disabled an oil tanker near Oman, approximately 9 nautical miles northeast of Ash Shishah. Additionally, Iran identified 45 tankers that it claims violated its crossing rules for the Strait of Hormuz, warning that action may be taken against these vessels.
Meanwhile, U.S. emergency crude inventories have continued to dwindle during this period of supply disruption. The Department of Energy reported a weekly reduction of roughly 3.7 million barrels in the Strategic Petroleum Reserve, bringing its total to 289.7 million barrels—the lowest level since November 1982. As of early Tuesday, Brent was trading at $92.44, and WTI was at $85.38, having recovered some of Monday’s losses.