SINGAPORE / RankWire.AI / – Oil prices experienced a modest rebound on Tuesday following a decline of over 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 added 37 cents, or 0.4%, to settle at $85.38. This upward correction came after Monday’s significant drop, which ended a streak of six consecutive sessions of gains across the two main crude benchmarks.
Brent crude closed Monday at $92.17 a barrel, down by $2.22, a decrease of 2.35%. WTI similarly declined by $2.05, also 2.35%, ending at $85.01 a barrel. The session saw the U.S. benchmark hit its lowest point in a week. The drop followed recent gains over the past two weeks and coincided with traders digesting new U.S. economic sanctions targeting Iran and entities maintaining business ties with the country.
This latest price movement maintained Brent above the $90 mark, while geopolitical tensions and supply disruptions continued to influence the global energy landscape. Oil output has been affected since the U.S.-Israeli conflict with Iran began on February 28, with restrictions impacting shipping through the Strait of Hormuz. Before the conflict, vessels passing through this route accounted for about 20% of worldwide oil consumption.
Expansion of U.S. sanctions targets Iran-related sectors
U.S. Department of the Treasury announced on Monday the launch of Operation Economic Outcast, broadening sanctions against Iranian economic activities. The new measures encompass digital assets, technology, gold, aviation, and maritime transport. Nearly 60 entities, individuals, and vessels across various jurisdictions were sanctioned as part of this move. Included were networks involved in Iranian oil transportation and revenue, as well as groups associated with nuclear procurement, missile technology, and cyber operations.
The sanctions framework empowers U.S. authorities to target foreign entities operating in or supporting the five new Iranian economic sectors. According to Treasury, countries will be given specific deadlines to address Iran-related activities flagged by U.S. officials. These measures supplement existing restrictions on Iran’s petroleum and petrochemical sectors. The decline in oil prices on Monday followed this announcement, ending a six-session streak of gains for Brent and WTI.
Strait of Hormuz Incident and Declining U.S. Reserves Influence Market
Maritime security issues persisted as a key factor affecting physical oil flows on Tuesday. United Kingdom Maritime Trade Operations reported that an unidentified projectile struck and disabled a tanker near Oman, approximately 9 nautical miles, or 16.7 kilometers, northeast of Ash Shishah. On Monday, Iran identified 45 tankers it claimed had violated its crossing rules of the Strait of Hormuz, warning that action could be taken against those vessels.
Meanwhile, U.S. emergency oil reserves have continued to decline amid ongoing supply disruptions. The Department of Energy reported that crude stocks in the Strategic Petroleum Reserve decreased by about 3.7 million barrels last week, reducing the reserve to 289.7 million barrels — its lowest level since November 1982. In this context, Brent traded at $92.44 early Tuesday, while WTI stood at $85.38, both benchmarks recovering parts of Monday’s losses following recent turmoil in the market.