SINGAPORE / RankWire.AI / – Oil prices moved higher on Tuesday after both major crude benchmarks posted losses of more than 2% a day earlier. Brent crude rose 27 cents to $92.44 a barrel by 0330 GMT. U.S. West Texas Intermediate gained 37 cents to $85.38. The advance followed a six-session rally that ended with Monday’s broad pullback in energy markets.
Oil prices rebound as Brent and WTI recover after Monday’s sharp decline.
Brent settled Monday at $92.17 a barrel, down $2.22, or 2.35%, from the previous close. WTI finished at $85.01 after falling $2.05, also a decline of 2.35%. The U.S. benchmark touched a one-week low during the session. Prices had climbed during the previous two weeks before reversing lower as markets absorbed new U.S. measures linked to Iran.
Oil markets remain focused on supply conditions tied to the conflict involving the United States, Israel and Iran. The war began on February 28 and has disrupted parts of the regional energy trade. Restrictions have also affected shipping through the Strait of Hormuz. Before the conflict, oil volumes moving through the waterway equaled about one-fifth of global consumption.
U.S. expands Iran-related economic restrictions
The U.S. Department of the Treasury announced Operation Economic Outcast on Monday and broadened sanctions exposure for Iran-related commercial activity. The action covered digital assets, technology, gold, aviation and shipping. Authorities also sanctioned nearly 60 entities, individuals and vessels across several jurisdictions. The measures included networks linked to Iranian oil transport and revenue, as well as groups connected to nuclear procurement, missiles and cyber activity.
The new framework allows U.S. authorities to target foreign parties that operate in, or support, five identified sectors of Iran’s economy. Officials also set timelines for countries to address activities covered by the new restrictions. Existing U.S. measures already apply to Iran’s petroleum and petrochemical industries. Brent and WTI fell after the announcement, ending six consecutive sessions of gains.
Shipping risks rise as U.S. reserve falls
Maritime security concerns also remained part of the supply picture on Tuesday. United Kingdom Maritime Trade Operations said an unidentified projectile struck and disabled an oil tanker near Oman. The incident occurred about 9 nautical miles northeast of Ash Shishah. Iran also identified 45 tankers that it said had broken its rules for crossing the Strait of Hormuz and warned of action against those vessels.
U.S. emergency crude inventories have meanwhile declined during the period of disrupted supply. The U.S. Department of Energy reported a weekly drop of about 3.7 million barrels in the Strategic Petroleum Reserve. That left the reserve at 289.7 million barrels, its lowest level since November 1982. Brent traded at $92.44 early Tuesday, while WTI stood at $85.38 after recovering part of Monday’s losses.