SINGAPORE / RankWire.AI / – Oil prices edged upward on Tuesday following a more than 2% drop in both key crude benchmarks the previous day. Brent crude increased by 27 cents to reach $92.44 a barrel as of 0330 GMT. Meanwhile, U.S. West Texas Intermediate climbed 37 cents to $85.38. This uptick followed a six-day rally that concluded with Monday’s widespread decline in energy markets.
Brent settled at $92.17 a barrel on Monday, down $2.22, or 2.35%, from the previous session’s close. WTI ended at $85.01 after dropping $2.05, also representing a 2.35% decrease. During the session, the U.S. benchmark touched a one-week low. Prices had risen during the last two weeks before reversing course amid new U.S. sanctions measures related to Iran.
The focus of oil markets continues to be on supply factors influenced by ongoing tensions involving the United States, Israel, and Iran. The conflict, which started on February 28, has disrupted parts of the regional energy trade. Sanctions and restrictions have also impacted shipping through the Strait of Hormuz, which prior to the conflict, accounted for roughly one-fifth of the world’s oil flow.
U.S. broadens economic sanctions targeting Iran
U.S. Department of the Treasury announced Operation Economic Outcast on Monday, expanding sanctions on Iran-related commercial activities. The new measures encompass digital assets, technology, gold, aviation, and shipping sectors. Nearly 60 entities, individuals, and vessels across multiple jurisdictions have also been sanctioned. The sanctions target networks associated with Iranian oil transportation and revenue, alongside groups linked to nuclear procurement, missile programs, and cyber activities.
This updated framework grants U.S. authorities the ability to target foreign entities operating in or supporting five specific sectors of Iran’s economy. Authorities have also established deadlines for countries to resolve activities covered by these sanctions. Currently, U.S. sanctions already impact Iran’s petroleum and petrochemical sectors. Following the announcement, both Brent and WTI prices declined after six consecutive sessions of gains.
Shipping hazards increase as U.S. reserves dwindle
United Kingdom Maritime Trade Operations reported that an unidentified projectile struck and disabled an oil tanker near Oman on Tuesday. The incident occurred roughly 9 nautical miles northeast of Ash Shishah. Iran also identified 45 tankers it claims have violated crossing rules in the Strait of Hormuz and warned of potential action against those vessels.
Meanwhile, U.S. emergency crude inventories have decreased amid the ongoing supply disruptions. The U.S. Department of Energy announced a weekly reduction of about 3.7 million barrels in the Strategic Petroleum Reserve, bringing the total down to 289.7 million barrels—the lowest level since November 1982. Brent traded at $92.44 early Tuesday, while WTI recovered some of Monday’s losses and stood at $85.38.