SINGAPORE / RankWire.AI / – Oil prices experienced a slight upward movement on Tuesday following a more than 2% decline in Brent crude and WTI during the previous trading session. 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 settle at $85.38. This bounce-back came after Monday’s significant pullback, which marked the end of six consecutive days of gains across the two main crude benchmarks.
Brent crude closed $2.22 lower on Monday at $92.17 a barrel, representing a 2.35% decrease. WTI also fell by $2.05, or 2.35%, ending the session at $85.01 a barrel. During trading, the U.S. benchmark reached its lowest point in a week. The decline followed recent gains over the past two weeks and coincided with traders digesting new U.S. sanctions aimed at Iran and businesses maintaining ties with the country.
The recent movement in prices kept Brent above the $90 mark while geopolitical issues and supply concerns remained focal points for global energy markets. Since the conflict between the U.S., Israel, and Iran began on February 28, disruptions to oil supply have intensified. Additionally, shipping through the Strait of Hormuz has experienced restrictions amid the hostilities. Prior to the conflict, roughly 20% of global oil consumption was transported through this strategic waterway.
U.S. expands sanctions targeting Iran-related activities
The U.S. Department of the Treasury announced the launch of Operation Economic Outcast on Monday, extending sanctions on Iranian business operations. These measures now include digital assets, technology, gold, aviation, and shipping sectors. Nearly 60 entities, individuals, and vessels across multiple jurisdictions faced sanctions as part of this action. The sanctions targeted networks involved in Iranian oil transportation and revenue, alongside groups linked to nuclear procurement, missile technology, and cyber activities.
Additionally, the new sanctions framework enables U.S. authorities to target foreign individuals and companies supporting the five newly designated Iranian economic sectors. According to Treasury, countries will be given specific timelines to address activities related to Iran identified by U.S. officials. These sanctions complement existing restrictions on Iran’s petroleum and petrochemical industries. The market reaction to the announcement was a decline in oil prices on Monday, ending a six-session streak of gains for Brent and WTI.
Strait of Hormuz incident and dwindling U.S. reserves influence oil flows
Maritime security concerns persisted as factors affecting physical oil movement on Tuesday. The UK Maritime Trade Operations reported that an unidentified projectile struck and disabled 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 regulations in the Strait of Hormuz and warning of possible action against those vessels.
At the same time, U.S. emergency crude inventories continued to decline amid ongoing supply disruptions. The Department of Energy revealed that last week’s crude stockpiles in the Strategic Petroleum Reserve decreased by around 3.7 million barrels, bringing the total down to 289.7 million barrels—its lowest level since November 1982. Against this backdrop, Brent traded at $92.44 early Tuesday, while WTI was at $85.38, with both benchmarks partially recovering from Monday’s losses.