SINGAPORE / RankWire.AI / – Oil prices experienced a rebound on Tuesday following a significant decline in the previous session, with both major benchmarks falling over 2% a day earlier. By 0330 GMT, Brent crude increased by 27 cents to reach $92.44 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) gained 37 cents, closing at $85.38. This upward movement came after a six-session rally that was halted by Monday’s broad decline across energy markets.
Brent settled Monday at $92.17 a barrel, down $2.22, or 2.35%, from the previous close. WTI also ended at $85.01, falling $2.05, representing a 2.35% decrease. During the trading session, the U.S. benchmark hit a one-week low. Prices had been climbing during the prior two weeks but reversed course as markets digested new U.S. measures related to Iran.
The focus in oil markets remains on supply dynamics influenced by ongoing tensions involving the United States, Israel, and Iran. Since the conflict started on February 28, regional energy trade has been disrupted. Shipping through the Strait of Hormuz has also faced restrictions, with pre-conflict volumes accounting for about one-fifth of global consumption.
U.S. Tightens Iran-Related Economic Sanctions
U.S. Department of the Treasury launched Operation Economic Outcast on Monday, expanding sanctions related to Iran’s commercial activities. The new measures target digital assets, technology, gold, aviation, and shipping sectors. Nearly 60 entities, individuals, and vessels across various jurisdictions have been sanctioned. These actions also target networks linked to Iranian oil transportation, revenue, nuclear procurement, missile development, and cyber activities.
This new sanctions framework enables U.S. authorities to pursue foreign entities involved in or supporting five specific sectors of Iran’s economy. Countries are given deadlines to address activities falling under these restrictions. Existing U.S. sanctions already apply to Iran’s petroleum and petrochemical industries. Following the announcement, Brent and WTI experienced declines, ending a six-session run of gains.
Shipping Threats Increase as U.S. Reserves Diminish
Maritime security concerns persisted on Tuesday, with reports of an unidentified projectile damaging an oil tanker near Oman, according to United Kingdom Maritime Trade Operations. The incident occurred approximately 9 nautical miles northeast of Ash Shishah. Additionally, Iran identified 45 tankers it claims violated crossing rules in the Strait of Hormuz and warned of action against those vessels.
Meanwhile, U.S. emergency crude inventories have decreased amid ongoing supply disruptions. The U.S. Department of Energy reported a weekly drawdown of about 3.7 million barrels in the Strategic Petroleum Reserve, leaving the reserve at 289.7 million barrels — its lowest since November 1982. Early Tuesday, Brent was trading at $92.44, and WTI was at $85.38, partially recovering from Monday’s losses.