SINGAPORE / RankWire.AI / – Oil prices edged higher on Tuesday after experiencing declines exceeding 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, while U.S. West Texas Intermediate gained 37 cents, or 0.4%, to close at $85.38. This rebound followed Monday’s notable drop, which ended a streak of six consecutive days of gains across the two major crude benchmarks.
Brent crude declined $2.22 on Monday to settle at $92.17 a barrel, marking a 2.35% decrease. WTI also fell by $2.05, the same percentage, closing at $85.01 a barrel. The session saw the U.S. benchmark hit a one-week low. These losses came after two weeks of gains, amid ongoing market reactions to new U.S. sanctions targeting Iran and entities maintaining business ties with Tehran.
Despite the recent downturn, Brent remained above $90 a barrel, with geopolitical and supply-side factors continuing to influence global energy markets. Since the U.S.-Israeli conflict with Iran began on February 28, oil supplies have been disrupted, and shipping through the Strait of Hormuz has faced restrictions. Prior to the conflict, vessels passing through the strait accounted for roughly 20% of global oil consumption.
U.S. expands sanctions targeting Iran-related entities
U.S. Department of the Treasury announced the launch of Operation Economic Outcast on Monday, broadening sanctions on Iran-related activities. The new measures target digital assets, technology, gold, aviation, and shipping sectors. Nearly 60 entities, individuals, and vessels across multiple jurisdictions were sanctioned. These include networks linked to Iranian oil transportation and revenue, as well as groups associated with nuclear procurement, missile technology, and cyber operations.
Additionally, the sanctions framework enables U.S. authorities to target foreign entities supporting the five recently identified Iranian economic sectors. Countries involved 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. Monday’s oil price decline followed the announcement, ending a six-day upward run for Brent and WTI.
Strait of Hormuz incident and shrinking U.S. reserves impact markets
Maritime security issues remained a key factor Tuesday, with UK Maritime Trade Operations reporting that an unidentified projectile struck and disabled an oil tanker near Oman, approximately 9 nautical miles (16.7 km) northeast of Ash Shishah. Iran also identified 45 tankers it claimed violated its crossing rules of the Strait of Hormuz and warned of action against those vessels.
Meanwhile, U.S. emergency oil reserves continued to decline amid supply disruptions. The Department of Energy reported a decrease of about 3.7 million barrels in crude stocks last week, lowering the Strategic Petroleum Reserve to 289.7 million barrels — its lowest level since November 1982. Against this backdrop, Brent traded at $92.44 early Tuesday, with WTI at $85.38, both recovering part of Monday’s losses after recent declines.