SINGAPORE / RankWire.AI / – Oil prices edged upward on Tuesday following a significant drop of over 2% in both major crude benchmarks the previous day. Brent crude increased by 27 cents to reach $92.44 a barrel by 0330 GMT, while U.S. West Texas Intermediate climbed 37 cents to close at $85.38. This upward movement marked the end of a six-session rally, which was halted by Monday’s broad sell-off in energy markets.
Brent concluded Monday at $92.17 a barrel, falling $2.22, or 2.35%, from the prior close. WTI finished at $85.01, down $2.05, also a decline of 2.35%. During the session, the U.S. benchmark dipped to a one-week low. Prices had increased during the previous fortnight before reversing course as markets absorbed new U.S. sanctions measures related to Iran.
Market attention remains on supply factors influenced by the ongoing conflict involving the United States, Israel, and Iran. Since the conflict erupted on February 28, regional energy trade has faced disruptions, and shipping through the Strait of Hormuz has been affected. Before the conflict, around 20% of global oil consumption moved through this strategic waterway.
U.S. broadens sanctions against Iran’s economy
U.S. Department of the Treasury launched Operation Economic Outcast on Monday, expanding sanctions on Iran-related commercial activities. The new measures target digital assets, technology, gold, aviation, and shipping sectors. Nearly 60 entities, individuals, and vessels across multiple jurisdictions have been sanctioned. These actions include networks involved in Iranian oil transportation, revenue collection, nuclear procurement, missile development, and cyber operations.
The updated framework enables U.S. authorities to target foreign entities engaged in or supporting five specified sectors of Iran’s economy. Authorities have also set deadlines for countries to address activities falling under the new sanctions. Existing U.S. restrictions already cover Iran’s petroleum and petrochemical industries. Following the announcement, Brent and WTI prices fell, ending a six-day streak of gains.
Maritime threats increase amid declining U.S. reserves
Tuesday’s supply concerns also include maritime security issues. The United Kingdom Maritime Trade Operations reported that an unidentified projectile struck and disabled an oil tanker near Oman, approximately 9 nautical miles northeast of Ash Shishah. Iran also identified 45 tankers allegedly violating its rules for crossing the Strait of Hormuz, warning of possible action against those vessels.
Meanwhile, U.S. emergency crude inventories have dropped amid ongoing supply disruptions. The Department of Energy reported a weekly reduction of about 3.7 million barrels in the Strategic Petroleum Reserve, which now stands at 289.7 million barrels—its lowest level since November 1982. Early Tuesday, Brent traded at $92.44, while WTI was at $85.38 after partially recovering from Monday’s decline.