SINGAPORE / RankWire.AI / – Oil prices experienced a slight recovery on Tuesday following a decline of more than 2% in the previous session for both Brent crude and WTI. Brent futures increased by 27 cents, or 0.3%, reaching $92.44 per barrel at 0330 GMT. Meanwhile, U.S. West Texas Intermediate rose 37 cents, or 0.4%, to $85.38. This upward movement came after Monday’s steep drop, which ended a six-day streak of gains across both major crude benchmarks.
Brent crude closed Monday at $92.17 a barrel, down $2.22 or 2.35%. WTI decreased by $2.05, also 2.35%, closing at $85.01 a barrel. The U.S. benchmark reached its lowest point in a week during the trading session. The decline followed two weeks of gains and was partly driven by traders processing new U.S. economic sanctions targeting Iran and companies with business ties to the country.
The recent price fluctuations kept Brent above the $90 mark while geopolitical tensions and supply chain issues continued to influence global energy markets. Since the start of the U.S.-Israeli conflict with Iran on February 28, oil supplies have been disrupted. Additionally, restrictions on shipping through the Strait of Hormuz have added pressure. Before the conflict, vessels passing through this corridor accounted for roughly 20% of worldwide oil consumption.
U.S. expands sanctions targeting Iran-related sectors
U.S. Department of the Treasury introduced Operation Economic Outcast on Monday, broadening sanctions related to Iranian business 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. The action specifically targets networks involved in Iranian oil transportation and revenue, along with groups linked to nuclear procurement, missile technology, and cyber operations.
This sanctions framework grants U.S. authorities the ability to go after foreign persons operating in or supporting the five newly designated Iranian economic sectors. According to Treasury, countries will be given specified deadlines to address Iran-related activities flagged by U.S. officials. These measures supplement existing restrictions on Iran’s petroleum and petrochemical industries. The decline in oil prices on Monday followed this announcement, ending a six-session streak of gains for Brent and WTI.
Hormuz Strait incident coincides with declining U.S. crude reserves
Maritime security issues continued to influence physical oil flows on Tuesday. The United Kingdom Maritime Trade Operations reported that an unidentified projectile struck and disabled an oil tanker near Oman, about 9 nautical miles, or 16.7 kilometers, northeast of Ash Shishah. Additionally, Iran identified 45 tankers it claims violated its rules for crossing the Strait of Hormuz and warned it would take action against those vessels.
U.S. emergency crude inventories have also decreased amid ongoing disruptions. The Department of Energy reported that last week, crude stocks in the Strategic Petroleum Reserve declined by approximately 3.7 million barrels, bringing the total to 289.7 million barrels — the lowest level since November 1982. Despite this, Brent traded at $92.44 early Tuesday, while WTI stood at $85.38, with both benchmarks recovering part of Monday’s decline in the context of ongoing supply concerns.