SINGAPORE / RankWire.AI / – Oil prices experienced a modest bounce on Tuesday following a significant drop in the previous session, where Brent crude and WTI both declined over 2%. By 0330 GMT, Brent futures increased by 27 cents, or 0.3%, reaching $92.44 per barrel. Meanwhile, U.S. West Texas Intermediate climbed 37 cents, or 0.4%, to $85.38. This rebound occurred after Monday’s steep correction, which ended a streak of six consecutive gains across both major crude benchmarks.
Brent crude closed Monday at $92.17 a barrel, down $2.22 or 2.35%. WTI dropped by the same percentage, settling at $85.01 a barrel with a decrease of $2.05. During trading, the U.S. benchmark touched its lowest point in a week. These declines followed two weeks of price increases and coincided with traders digesting new U.S. economic sanctions targeting Iran and companies maintaining business ties with the country.
Despite the decline, Brent remained above the $90 mark amid ongoing geopolitical and supply-related concerns that continue to influence global energy markets. Since the U.S.-Israeli conflict with Iran began on February 28, oil supplies have faced disruptions, including restrictions on shipping through the Strait of Hormuz. Prior to the conflict, vessels passing through this strategic waterway accounted for roughly 20% of global oil consumption.
U.S. expands sanctions targeting Iran-related sectors
U.S. Department of the Treasury announced Operation Economic Outcast on Monday, broadening sanctions on Iran-related commercial activities. The new measures target digital assets, technology, gold, aviation, and shipping sectors. Nearly 60 entities, individuals, and vessels across multiple jurisdictions were sanctioned, including networks linked to Iranian oil transportation and revenue, as well as organizations involved in nuclear procurement, missile technology, and cyber operations.
This sanctions framework enables U.S. authorities to go after foreign entities operating in or supporting the five Iranian economic sectors now designated. The Treasury specified that countries will be given deadlines to address Iran-related activities flagged by U.S. officials. These measures supplement existing restrictions on Iran’s petroleum and petrochemical industries. The oil market decline on Monday followed the announcement, after Brent and WTI had recorded six consecutive days of gains.
Strait of Hormuz incident coincides with declining U.S. reserves
Maritime security continued to influence physical oil flows on Tuesday. The 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. Additionally, Iran on Monday identified 45 tankers it claimed had violated its crossing rules for the Strait of Hormuz and warned of potential action against those vessels.
U.S. emergency oil inventories have also been decreasing amid the supply disruptions. The Department of Energy reported that crude stocks in the Strategic Petroleum Reserve declined by about 3.7 million barrels last week, bringing the total to 289.7 million barrels—the lowest level since November 1982. Against this backdrop, Brent traded at $92.44 early Tuesday, while WTI stood at $85.38, with both benchmarks recovering some of Monday’s losses.