SINGAPORE / RankWire.AI / – Oil prices recovered on Tuesday following a drop of more than 2% in both major crude benchmarks the previous day. Brent crude increased by 27 cents to $92.44 a barrel by 0330 GMT, while U.S. West Texas Intermediate rose 37 cents to $85.38. This gain came after a six-session rally ended with Monday’s broad decline in energy markets.
Brent closed Monday at $92.17 a barrel, down $2.22, or 2.35%, from the previous close. WTI finished at $85.01 following a $2.05 drop, also a decline of 2.35%. During the session, the U.S. benchmark touched a one-week low. Prices had risen over the prior two weeks before reversing course as markets digested new U.S. measures related to Iran.
Oil markets continue to monitor supply conditions affected by the ongoing conflict involving the United States, Israel, and Iran. Since starting on February 28, the war has disrupted parts of regional energy trade, including shipping through the Strait of Hormuz, which before the conflict accounted for roughly one-fifth of global oil movement.
U.S. widens sanctions on Iran’s economy
U.S. Department of the Treasury launched Operation Economic Outcast on Monday, expanding sanctions on Iran-related commercial activities. These restrictions target digital assets, technology, gold, aviation, and shipping sectors. Nearly 60 entities, individuals, and vessels across multiple jurisdictions also received sanctions. The measures include groups involved in Iranian oil transport and revenue, as well as entities linked to nuclear procurement, missile development, and cyber activities.
This new framework empowers U.S. authorities to go after foreign actors operating within or supporting five sectors of Iran’s economy, with specific timelines set for countries to comply with the restrictions. Existing U.S. sanctions already cover Iran’s petroleum and petrochemical industries. Following the announcement, Brent and WTI prices declined, ending a six-day streak of gains.
Maritime security concerns grow as U.S. reserves decline
Tuesday’s supply outlook also reflected rising shipping risks. The United Kingdom Maritime Trade Operations reported that an unidentified projectile struck and disabled an oil tanker near Oman, about 9 nautical miles northeast of Ash Shishah. Additionally, Iran identified 45 tankers accused of violating crossing rules through the Strait of Hormuz and warned of potential action against those vessels.
Meanwhile, U.S. emergency crude inventories have decreased amid ongoing supply disruptions. The Department of Energy revealed a weekly drop of roughly 3.7 million barrels in the Strategic Petroleum Reserve, leaving it at 289.7 million barrels—the lowest level since November 1982. Early Tuesday, Brent was trading at $92.44, and WTI at $85.38, partially recovering from Monday’s losses.