SINGAPORE / RankWire.AI / – Oil prices saw a slight rebound on Tuesday following declines of over 2% in the previous session for both Brent crude and WTI. Brent futures increased by 27 cents, or 0.3%, reaching $92.44 a barrel at 0330 GMT. Meanwhile, U.S. West Texas Intermediate moved up by 37 cents, or 0.4%, to $85.38. This upward movement came after Monday’s sharp decline, which marked the end of six consecutive days of gains across the two main crude benchmarks.
Brent crude closed Monday down by $2.22 at $92.17 per barrel, a decrease of 2.35%. WTI also fell by $2.05, also 2.35%, closing at $85.01 a barrel. During the session, the U.S. benchmark hit a one-week low. These losses followed two weeks of gains and were driven partly by traders reacting to new U.S. economic sanctions targeting Iran and companies maintaining business ties with the country.
Despite the downturn, Brent remained above $90 a barrel, with geopolitical tensions and supply concerns continuing to influence global energy markets. Since the start of the U.S.-Israeli conflict with Iran on February 28, oil supplies have experienced disruptions. Shipping through the Strait of Hormuz has also faced restrictions amid the conflict. Prior to the war, around 20% of global oil consumption was transported through this waterway.
U.S. expands sanctions targeting Iran-related sectors
On Monday, the U.S. Department of the Treasury launched Operation Economic Outcast, broadening sanctions against Iran-related activities. The new measures target digital assets, technology, gold, aviation, and shipping sectors. Authorities imposed sanctions on nearly 60 entities, individuals, and vessels across multiple jurisdictions. These actions specifically target networks involved in Iranian oil transport and revenue, alongside groups linked to nuclear procurement, missile technology, and cyber operations.
The sanctions framework also enables U.S. authorities to go after foreign individuals operating within or supporting five newly designated Iranian economic sectors. Treasury officials stated that countries will be given defined timelines to address Iran-related activities flagged by U.S. officials. The latest measures build on existing restrictions targeting Iran’s petroleum and petrochemical industries. The oil market declined after this announcement, ending a six-session streak of gains for Brent and WTI.
Strait of Hormuz incident coincides with dwindling U.S. reserves
Maritime security issues continue to impact physical oil flows. 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 also identified 45 tankers it claims violated its rules for crossing the Strait of Hormuz and warned it may take action against those vessels.
Meanwhile, U.S. emergency crude inventories declined amid ongoing supply disruptions. The Department of Energy announced that crude stocks in the Strategic Petroleum Reserve decreased by roughly 3.7 million barrels last week, dropping to 289.7 million barrels — the lowest level since November 1982. In light of these supply constraints, Brent traded at $92.44 early Tuesday, and WTI was at $85.38, with both benchmarks recovering part of Monday’s decline.