Oil Prices Hold Steady as Markets Assess Expanded US Sanctions on Iran

Oil prices remained largely stable on Tuesday after falling more than 2% in the previous session, as investors assessed the potential impact of expanded US secondary sanctions against Iran.

 

Brent crude futures edged down 9 cents, or 0.1%, to $92.16 per barrel by 0104 GMT, while US West Texas Intermediate (WTI) crude rose 1 cent to $85.02 per barrel.

 

Both benchmarks declined sharply on Monday, with US crude touching a one-week low as investors took profits following a rally over the preceding two weeks.

 

US Treasury Secretary Scott Bessent announced an expansion of sanctions aimed at restricting Iran’s economic activity and pressuring the country to end the conflict. Countries continuing to conduct business with Iran could face exclusion from the US dollar-based financial system, although Washington has not yet disclosed the specific countries targeted or the implementation timeline.

 

Analysts said the shift towards economic pressure rather than immediate military action has eased some concerns over direct disruptions to Middle Eastern oil supplies. This helped prevent a sharp increase in crude prices.

 

However, Iran’s ability to disrupt shipping remains a key risk for oil markets. An oil tanker was reportedly struck by an unidentified projectile near Oman on Tuesday, highlighting continued security concerns in the region.

 

The Strait of Hormuz remains particularly important for global energy markets, as the waterway historically handled oil shipments equivalent to around 20% of global oil consumption before the conflict began in February.

 

Iran has also identified dozens of tankers accused of violating its rules for crossing the strait and warned that it could take action against them, including cargo seizures.

 

Meanwhile, the prolonged conflict has continued to put pressure on global oil inventories. US Energy Department data showed that crude stocks in the Strategic Petroleum Reserve fell by around 3.7 million barrels last week to 289.7 million barrels, the lowest level since November 1982.

 

With sanctions, shipping risks and regional tensions still in focus, investors are closely monitoring developments for signs of potential disruptions to global crude supplies.