SINGAPORE / RankWire.AI / – Oil prices saw a modest rebound on Tuesday, following a decline of more than 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. U.S. West Texas Intermediate climbed by 37 cents, or 0.4%, to $85.38. This upward move came after Monday’s significant retreat, which brought an end to six consecutive days of gains across the two main crude benchmarks.
Brent crude closed $2.22 lower on Monday at $92.17 per barrel, marking a decline of 2.35%. WTI decreased by $2.05, also 2.35%, ending at $85.01 a barrel. During trading, the U.S. benchmark touched a one-week low. These losses followed two weeks of upward movement and coincided with traders digesting new U.S. economic sanctions targeting Iran and entities maintaining commercial ties with the country.
Despite the recent decline, Brent remained above $90 a barrel amid ongoing geopolitical tensions and supply concerns that continue to influence global energy markets. Since the start of the U.S.-Israeli conflict with Iran on February 28, oil supplies have faced disruptions. Shipping through the Strait of Hormuz has also experienced restrictions during the conflict, with prior to the war, about 20% of worldwide oil consumption passed through this waterway, representing significant volumes.
Expansion of U.S. sanctions targets Iran’s economic sectors
On Monday, the U.S. Department of the Treasury launched Operation Economic Outcast and widened sanctions exposure related to Iran-affiliated business activities. The new measures encompass digital assets, technology, gold, aviation, and shipping. Nearly 60 entities, individuals, and vessels across multiple jurisdictions were also sanctioned. These actions targeted networks involved in Iranian oil transportation and revenue, along with groups linked to nuclear procurement, missile technology, and cyber operations.
The sanctions framework further enables U.S. authorities to impose restrictions on foreign persons operating in or supporting five newly designated Iranian economic sectors. According to the Treasury, countries will be given specific timelines to address Iran-related activities flagged by U.S. officials. These measures supplement existing restrictions on Iran’s petroleum and petrochemical industries. The decline in oil prices on Monday followed this announcement, after both Brent and WTI had recorded six straight sessions of gains.
Strait of Hormuz incident and shrinking U.S. reserves impact market dynamics
Maritime security issues continue to influence physical oil flows. The United Kingdom Maritime Trade Operations reported that an unidentified projectile struck and disabled an oil tanker near Oman. The attack occurred approximately 9 nautical miles, or 16.7 kilometers, northeast of Ash Shishah. Additionally, Iran identified 45 tankers on Monday that it claimed violated its rules for transiting the Strait of Hormuz and warned it would take action against those vessels.
U.S. emergency crude inventories have also decreased amid ongoing supply disruptions. The Department of Energy reported that crude stocks in the Strategic Petroleum Reserve declined by about 3.7 million barrels last week. This reduction brought the reserve down to 289.7 million barrels, the lowest level since November 1982. Against this background of tightening supply, Brent traded at $92.44 early Tuesday, while WTI was at $85.38 after both benchmarks recovered part of Monday’s decline.