SINGAPORE / RankWire.AI / – Oil prices edged higher on Tuesday following a more than 2% decrease in both major crude benchmarks the previous day. Brent crude increased by 27 cents to trade at $92.44 per barrel at 0330 GMT, while U.S. West Texas Intermediate added 37 cents, reaching $85.38. This upward move came after a six-day rally that was halted by Monday’s broad market retreat in energy assets.
Brent closed Monday at $92.17 per barrel, marking a decline of $2.22, or 2.35%, from the previous session. WTI finished at $85.01, dropping $2.05, also a 2.35% decrease. During trading, the U.S. benchmark hit a one-week low. Prices had been climbing over the prior two weeks before reversing course amid new U.S. sanctions measures related to Iran.
Focus remains on supply dynamics linked to the ongoing conflict involving the United States, Israel, and Iran. Since the conflict erupted on February 28, disruptions have affected regional energy shipments. Shipping through the Strait of Hormuz has also been impacted, with pre-conflict volumes representing roughly one-fifth of global oil consumption.
U.S. enhances sanctions targeting Iran’s economy
U.S. Department of the Treasury announced Operation Economic Outcast on Monday, expanding sanctions on Iran-related trade and business activities. The sanctions now include digital assets, technology, gold, aviation, and shipping. Nearly 60 entities, individuals, and vessels across various jurisdictions have been sanctioned. The new measures target networks involved in Iranian oil transport and revenue, along with entities linked to nuclear procurement, missile development, and cyber operations.
This framework enables U.S. authorities to target foreign entities operating within or supporting five sectors of Iran’s economy. Authorities have also set deadlines for countries to address activities falling under these new restrictions. Existing U.S. sanctions already cover Iran’s petroleum and petrochemical sectors. Following the announcement, Brent and WTI prices declined, ending a six-session streak of gains.
Shipping threats increase as U.S. crude reserves drop to 1982 levels
Concerns over maritime security persisted on Tuesday, with UK Maritime Trade Operations reporting an unidentified projectile hitting and disabling an oil tanker near Oman. The incident took place approximately 9 nautical miles northeast of Ash Shishah. Iran also identified 45 tankers it claims violated crossing rules for the Strait of Hormuz, warning of possible action against these vessels.
Meanwhile, U.S. emergency crude stockpiles have decreased amid ongoing supply disruptions. The Department of Energy reported a weekly drawdown of roughly 3.7 million barrels from the Strategic Petroleum Reserve, which now stands at 289.7 million barrels—the lowest since November 1982. Brent traded at $92.44 early Tuesday, with WTI at $85.38 after recovering part of Monday’s losses.