SINGAPORE / RankWire.AI / – Oil prices recovered modestly on Tuesday after Brent crude and WTI fell more than 2% in the previous session. Brent futures rose 27 cents, or 0.3%, to $92.44 a barrel by 0330 GMT. U.S. West Texas Intermediate gained 37 cents, or 0.4%, to $85.38. The rebound followed Monday’s sharp pullback, which ended six consecutive sessions of gains across the two benchmark crude contracts.
Brent crude settled $2.22 lower on Monday at $92.17 a barrel, a decline of 2.35%. WTI dropped $2.05, also 2.35%, to close at $85.01 a barrel. The U.S. benchmark reached a one-week low during the session. The losses followed gains over the previous two weeks and came as traders absorbed new U.S. economic measures targeting Iran and entities maintaining business links with the country.
The latest price movement kept Brent above $90 a barrel while geopolitical and supply developments remained central to global energy markets. Oil supplies have faced disruption since the U.S.-Israeli war with Iran began on February 28. Shipping through the Strait of Hormuz has also faced restrictions during the conflict. Before the war, cargoes passing through the waterway represented volumes equal to about 20% of global oil consumption.
U.S. sanctions expand Iran-related restrictions
On Monday, the U.S. Department of the Treasury launched Operation Economic Outcast and expanded sanctions exposure for Iran-related business activity. The measures cover digital assets, technology, gold, aviation and shipping. Authorities also sanctioned nearly 60 entities, individuals and vessels across several jurisdictions. The action included networks connected to Iranian oil transportation and revenue, alongside other groups linked to nuclear procurement, missile technology and cyber operations.
The sanctions framework also allows U.S. authorities to target foreign persons operating in, or supporting, the five newly identified Iranian economic sectors. Treasury said countries would receive defined timelines to address Iran-related activities identified by U.S. officials. The measures added to existing restrictions covering Iran’s petroleum and petrochemical industries. Monday’s oil market decline followed the announcement after Brent and WTI had posted six straight sessions of gains.
Hormuz incident coincides with shrinking U.S. reserves
Maritime security remained another factor affecting physical oil flows on Tuesday. United Kingdom Maritime Trade Operations reported that an unidentified projectile struck and disabled an oil tanker near Oman. The incident occurred about 9 nautical miles, or 16.7 kilometers, northeast of Ash Shishah. Iran on Monday also identified 45 tankers that it said had violated its rules for crossing the Strait of Hormuz and warned of action against those vessels.
U.S. emergency oil inventories have also declined during the supply disruptions. The U.S. Department of Energy reported that crude stocks in the Strategic Petroleum Reserve fell by about 3.7 million barrels last week. That reduced the reserve to 289.7 million barrels, its lowest level since November 1982. Against that supply backdrop, Brent traded at $92.44 early Tuesday, while WTI stood at $85.38 after both benchmarks recovered part of Monday’s decline.