SINGAPORE / RankWire.AI / – Oil prices saw a modest 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 rose by 37 cents, or 0.4%, to settle at $85.38. This upward move came after Monday’s sharp retreat, ending six consecutive sessions of gains across both key crude benchmarks.
Brent crude closed Monday at $92.17 a barrel, down $2.22, a decrease of 2.35%. WTI also declined by $2.05, or 2.35%, finishing at $85.01 a barrel. The session saw the U.S. benchmark hit a one-week low. These declines followed two weeks of gains and occurred amid trader reactions to new U.S. economic measures targeting Iran and companies maintaining ties with the country.
Despite the recent drop, Brent maintained a level above $90 a barrel, with geopolitical tensions and supply concerns continuing to influence the global energy markets. Since the start of the U.S.-Israeli conflict with Iran on February 28, oil supplies have faced disruptions. Shipping through the Strait of Hormuz has also been impacted, with restrictions imposed during the conflict. Prior to the outbreak, the passage through this waterway accounted for roughly 20% of global oil consumption.
Expansion of U.S. Sanctions Targets Iran-Related Sectors
On Monday, the U.S. Department of the Treasury announced the launch of Operation Economic Outcast, broadening sanctions on Iran-related business activities. The measures now include digital assets, technology, gold, aviation, and shipping sectors. Nearly 60 entities, individuals, and vessels across multiple jurisdictions have also been sanctioned. These actions specifically target networks involved in Iranian oil transportation and revenue, along with groups linked to nuclear procurement, missile technology, and cyber operations.
The sanctions framework empowers U.S. authorities to impose further restrictions on foreign persons supporting or operating within the five newly designated Iranian economic sectors. The Treasury stated that countries will have specific deadlines to address Iran-related activities identified by U.S. officials. These measures augment existing sanctions on Iran’s petroleum and petrochemical industries. The decline in oil markets on Monday followed the announcement, after six consecutive sessions of gains for Brent and WTI.
Strait of Hormuz Incident and Declining U.S. Reserves Influence Market
Maritime security concerns continued to impact physical oil flows on Tuesday. United Kingdom Maritime Trade Operations reported that an unidentified projectile struck and damaged an oil tanker near Oman. The incident took place approximately 9 nautical miles, or 16.7 kilometers, northeast of Ash Shishah. Iran also identified 45 tankers on Monday, claiming they violated its crossing rules through the Strait of Hormuz and warning of action against those vessels.
U.S. emergency crude inventories have also diminished amid ongoing supply disruptions. The Department of Energy reported that crude stocks in the Strategic Petroleum Reserve fell by about 3.7 million barrels last week, lowering the reserve to 289.7 million barrels—the lowest level since November 1982. Against this backdrop of tightening supplies, Brent traded at $92.44 early Tuesday, while WTI stood at $85.38, with both benchmarks recovering part of Monday’s decline.