SINGAPORE / RankWire.AI / – Oil prices experienced a slight rebound on Tuesday following a decline of more than 2% in the previous session for Brent crude and WTI. 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%, to settle at $85.38. This upward movement came after Monday’s significant retracement, which had ended a streak of six consecutive days of gains for both major crude benchmarks.
Brent crude closed $2.22 lower on Monday at $92.17 a barrel, representing a 2.35% decrease. WTI also dropped by $2.05, or 2.35%, finishing at $85.01 a barrel. The U.S. benchmark touched a one-week low during trading. These losses followed a two-week period of gains, as traders processed new U.S. economic sanctions on Iran and entities linked to its business activities.
Despite the downturn, Brent stayed above the $90 mark amid ongoing geopolitical tensions and supply concerns that continue to influence global energy markets. Since the outbreak of the U.S.-Israeli conflict with Iran on February 28, oil supplies have faced disruptions. Additionally, shipping through the Strait of Hormuz has encountered restrictions during the conflict, which previously accounted for about 20% of global oil consumption through passing cargoes.
Sanctions on Iran Expand Under U.S. Policy
U.S. Department of the Treasury introduced Operation Economic Outcast on Monday, increasing sanctions targeting Iran-related commercial activities. The new measures extend to digital assets, technology, gold, aviation, and shipping sectors. Nearly 60 entities, individuals, and vessels across various jurisdictions have been sanctioned. The action targets networks associated with Iranian oil transportation and revenue, along with groups involved in nuclear procurement, missile technology, and cyber operations.
The sanctions framework also authorizes U.S. authorities to pursue foreign individuals operating in or supporting the five newly designated Iranian economic sectors. The Treasury specified that affected countries will have designated timelines to address Iran-related activities flagged by U.S. officials. These restrictions augment existing sanctions on Iran’s petroleum and petrochemical industries. The decline in oil prices on Monday followed this announcement, after both Brent and WTI had experienced six consecutive sessions of gains.
Strait of Hormuz Incident and Falling U.S. Reserves Influence Market Dynamics
Maritime security concerns persisted Tuesday, as 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 it claims have violated its rules for crossing the Strait of Hormuz and warned of potential action against those vessels.
U.S. emergency crude inventories have also diminished amid ongoing supply disruptions. The Department of Energy disclosed that last week, crude stockpiles in the Strategic Petroleum Reserve decreased by about 3.7 million barrels, 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, as both benchmarks recovered part of Monday’s declines.