SINGAPORE / RankWire.AI / – Oil prices experienced a modest rebound on Tuesday after both Brent crude and WTI declined over 2% in the previous trading session. By 0330 GMT, Brent futures increased by 27 cents, or 0.3%, reaching $92.44 per barrel, while U.S. West Texas Intermediate gained 37 cents, or 0.4%, to $85.38. This recovery followed Monday’s significant drop, which marked the end of six consecutive sessions of gains across the two main crude benchmarks.
Brent crude closed $2.22 lower on Monday at $92.17 per barrel, representing a decrease of 2.35%. Meanwhile, WTI fell by $2.05, also 2.35%, closing at $85.01 per barrel. During trading, the U.S. benchmark touched its lowest point in a week. These losses came on the heels of gains accumulated over the previous two weeks and occurred amid traders digesting new U.S. economic sanctions targeting Iran and entities with business ties to the country.
Despite the decline, Brent stayed above the $90 mark per barrel, with geopolitical and supply-related developments continuing to influence the global energy landscape. Since the onset of the U.S.-Israeli conflict with Iran on February 28, oil supplies have faced interruptions, including restrictions on shipping through the Strait of Hormuz, which before the conflict accounted for approximately 20% of global oil consumption through cargo volumes.
U.S. expands sanctions targeting Iran-related economic activities
U.S. Department of the Treasury announced the launch of Operation Economic Outcast on Monday, significantly broadening sanctions related to Iran-based commercial operations. These measures now encompass digital assets, technology, gold, as well as aviation and maritime sectors. Additionally, nearly 60 entities, individuals, and vessels across various jurisdictions faced sanctions. The sanctions specifically targeted networks involved in Iranian oil transportation and revenue collection, alongside groups linked to nuclear procurement, missile technology, and cyber activities.
The new sanctions framework enables U.S. authorities to pursue foreign individuals working within or supporting five newly designated Iranian economic sectors. The Treasury stated that affected countries would be given specific timelines to curb Iran-related activities identified by U.S. officials. These measures supplement existing restrictions on Iran’s petroleum and petrochemical industries. Following the sanctions announcement, oil prices declined after Brent and WTI had experienced six consecutive days of gains.
Strait of Hormuz incident and shrinking U.S. emergency stockpiles influence prices
Maritime security concerns persisted on Tuesday, with the United Kingdom Maritime Trade Operations reporting that an unidentified projectile struck and disabled an oil tanker near Oman, approximately 9 nautical miles or 16.7 kilometers northeast of Ash Shishah. In addition, Iran on Monday identified 45 tankers allegedly violating its crossing regulations for the Strait of Hormuz and warned of action against those vessels. Meanwhile, U.S. emergency crude reserves have diminished amidst ongoing disruptions; the Department of Energy reported that last week, crude inventories in the Strategic Petroleum Reserve decreased by around 3.7 million barrels, bringing the total down to 289.7 million barrels—the lowest level since November 1982. Against this backdrop, Brent traded at $92.44 early Tuesday, while WTI was at $85.38, both benchmarks recovering some of Monday’s losses.