SINGAPORE / RankWire.AI / – Oil prices experienced a slight rebound on Tuesday following a drop of more than 2% for Brent crude and WTI in the previous session. 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 $85.38. This recovery came after Monday’s significant decline that ended a streak of six consecutive sessions of gains in both major crude benchmarks.
Brent crude closed $2.22 lower on Monday at $92.17 a barrel, marking a decrease of 2.35%. WTI also fell by $2.05, the same percentage, ending at $85.01 per barrel. During Monday’s trading, the U.S. benchmark hit a one-week low. The declines followed two weeks of gains and coincided with traders digesting new U.S. economic measures targeting Iran and companies maintaining commercial ties with the country.
Despite the recent dip, Brent stayed above $90 a barrel, with geopolitical tensions and supply issues still influencing global energy markets. Since the start of the U.S.-Israeli conflict with Iran on February 28, oil supplies have faced disruptions. Restrictions on shipping through the Strait of Hormuz have also intensified during this period. Prior to the conflict, vessels passing through this waterway accounted for roughly 20% of worldwide oil consumption.
Expansion of U.S. sanctions targets Iran-related sectors
U.S. Department of the Treasury announced Operation Economic Outcast on Monday, broadening sanctions on Iran-related activities. The new measures target digital assets, technology, gold, aviation, and shipping sectors. Nearly 60 entities, individuals, and vessels across multiple jurisdictions faced sanctions. These included networks involved in Iranian oil transportation and revenue collection, as well as groups linked to nuclear procurement, missile technology, and cyber operations.
The new sanctions framework permits U.S. authorities to target foreign individuals operating within or supporting the five newly designated Iranian economic sectors. Treasury also indicated that countries will have specific deadlines to address Iran-related activities flagged by U.S. officials. These measures complement existing restrictions on Iran’s petroleum and petrochemical industries. The oil market’s decline on Monday followed the announcement, coming after six consecutive days of gains for Brent and WTI.
Strait of Hormuz tensions coincide with declining U.S. reserves
Maritime security concerns contributed to physical oil flow disruptions on Tuesday. The United Kingdom Maritime Trade Operations reported that an unidentified projectile struck and disabled an oil tanker near Oman, approximately 9 nautical miles, or 16.7 kilometers, northeast of Ash Shishah. On Monday, Iran identified 45 tankers it claimed violated its crossing regulations through the Strait of Hormuz and issued warnings of action against those vessels.
U.S. emergency crude inventories have diminished amid ongoing supply disruptions. The Department of Energy reported that last week, crude stocks in the Strategic Petroleum Reserve decreased by about 3.7 million barrels, bringing the total to 289.7 million barrels—the lowest level since November 1982. In this context, Brent traded at $92.44 early Tuesday, while WTI was at $85.38, with both benchmarks recovering part of Monday’s losses.