SINGAPORE / RankWire.AI / – Oil prices experienced a modest rebound on Tuesday following a decline of over 2% in both Brent crude and WTI during the previous session. Brent futures increased by 27 cents, or 0.3%, reaching $92.44 a barrel at 0330 GMT. Meanwhile, U.S. West Texas Intermediate gained 37 cents, or 0.4%, closing at $85.38. This upward move came after Monday’s significant sell-off, which marked the end of six consecutive days of gains across the two main crude benchmarks.
Brent crude settled Monday at $92.17 a barrel, down by $2.22 or 2.35%. WTI also decreased by $2.05, matching the same 2.35% decline, ending the session at $85.01 a barrel. During trading, the U.S. benchmark dipped to its lowest level in a week. The decline followed two weeks of gains and was influenced by traders processing new U.S. sanctions targeting Iran and companies maintaining business relations with the country.
Despite the drop, Brent held above the $90 mark, with geopolitical tensions and supply concerns continuing to influence global energy markets. Since the outbreak of the U.S.-Israeli conflict with Iran on February 28, oil supplies have faced notable disruptions. Restrictions on shipping through the Strait of Hormuz have also increased amid the conflict. Prior to the escalation, approximately 20% of global oil consumption was transported through this vital waterway.
U.S. Tightens Iran-Related Sanctions with Broader Measures
U.S. Department of the Treasury announced the launch of Operation Economic Outcast on Monday, expanding sanctions related to Iran. These measures target digital assets, technology, gold, aviation, and shipping sectors. Nearly 60 entities, individuals, and vessels across various jurisdictions were sanctioned in this effort. The new restrictions included networks involved in Iranian oil transportation and revenue, as well as groups associated with nuclear procurement, missile technology, and cyber activities.
The sanctions framework now enables U.S. authorities to target foreign persons operating within or supporting Iran’s five newly designated economic sectors. Treasury officials stated that affected countries would be given specific timelines to address Iran-related activities identified by U.S. agencies. These measures extend previous restrictions on Iran’s petroleum and petrochemical sectors. The decline in oil prices on Monday followed the announcement, which came after Brent and WTI had enjoyed six consecutive days of gains.
Straits of Hormuz Tensions and Dwindling U.S. Reserves Impact Market Dynamics
Maritime security issues continue to influence physical oil flows. The United Kingdom Maritime Trade Operations reported an unidentified projectile hitting and disabling an oil tanker near Oman, approximately 9 nautical miles, or 16.7 kilometers, northeast of Ash Shishah. Additionally, Iran on Monday identified 45 tankers that it claims violated its crossing rules for the Strait of Hormuz and warned it would take action against these vessels.
U.S. emergency oil reserves have also diminished amid ongoing supply disruptions. The Department of Energy reported a reduction of about 3.7 million barrels in crude stocks last week within the Strategic Petroleum Reserve, lowering its total to 289.7 million barrels — the lowest level since November 1982. Despite this decline, Brent traded at $92.44 early Tuesday, and WTI stood at $85.38, both benchmarks recovering some of Monday’s losses amid ongoing geopolitical and supply uncertainties.