SINGAPORE / RankWire.AI / – Oil prices rebounded on Tuesday after experiencing losses exceeding 2% in the previous session. Brent crude increased by 27 cents to reach $92.44 a barrel at 0330 GMT, while U.S. West Texas Intermediate climbed 37 cents to $85.38. This upward movement came after a six-day rally that was followed by a broad market pullback in energy assets on Monday.
Brent concluded Monday at $92.17 a barrel, representing a $2.22, or 2.35%, decrease from the previous session. WTI ended at $85.01, down by $2.05, also 2.35% lower. During the trading day, the U.S. benchmark touched a one-week low. Prices had been rising over the last two weeks before reversing course amid new U.S. measures associated with Iran.
Oil markets continue to monitor supply dynamics linked to the ongoing conflict involving the United States, Israel, and Iran. The hostilities, which began on February 28, have disrupted regional energy trade routes. Additionally, shipping through the Strait of Hormuz has faced restrictions, with about one-fifth of global oil consumption passing through this waterway prior to the conflict.
U.S. broadens sanctions targeting Iran’s economy
U.S. Department of the Treasury announced Operation Economic Outcast on Monday, expanding sanctions related to Iran’s commercial activities. The new measures target digital assets, technology, gold, aviation, and shipping. Nearly 60 entities, individuals, and vessels across various jurisdictions have been sanctioned. These measures also target networks involved in Iranian oil transportation and revenue, as well as groups linked to nuclear procurement, missiles, and cyber operations.
This new framework empowers U.S. authorities to pursue foreign entities operating in or supporting five specific sectors of Iran’s economy. Governments are given timelines to address activities under these restrictions. Existing U.S. sanctions already affect Iran’s petroleum and petrochemical industries. Following the announcement, Brent and WTI prices declined, ending a six-session winning streak.
Maritime security concerns intensify amid falling U.S. reserves
Tuesday’s supply concerns also encompass maritime security issues. The United Kingdom Maritime Trade Operations reported an unidentified projectile struck and damaged an oil tanker near Oman, approximately 9 nautical miles northeast of Ash Shishah. Iran has also identified 45 tankers it claims violated crossing rules for the Strait of Hormuz and has warned of potential action against those vessels.
Meanwhile, U.S. emergency crude inventories have decreased amid ongoing supply disruptions. The Department of Energy reported a weekly drawdown of around 3.7 million barrels from the Strategic Petroleum Reserve, leaving the reserve at 289.7 million barrels—the lowest level since November 1982. Early Tuesday, Brent was trading at $92.44, while WTI stood at $85.38, having regained part of Monday’s losses.