Oil Prices Rebound as Markets Assess Latest U.S. Sanctions on Iran

PUKMEDIA

Oil field.

Oil prices recovered on Tuesday after falling more than 2% in the previous session, as investors assessed the potential impact of the latest U.S. sanctions on Iran and their implications for global oil supplies.

According to Reuters, Brent crude futures rose 27 cents, or 0.3%, to $92.44 a barrel by 0330 GMT, while U.S. West Texas Intermediate crude was up 37 cents, or 0.4%, at $85.38.

Both contracts settled lower on Monday, with U.S. crude oil falling to a one-week low on profit taking after prices rallied over the previous two weeks.

U.S. Treasury Secretary Scott Bessent on Monday unveiled an expansion of sanctions to cut off Iran's economic lifeline, to force an end to the war between them, telling countries they would need to sever their business ties or risk being cut out of the dollar-based financial system.

However, he declined to identify the countries that would be targeted or reveal when those penalties would take effect, saying he would instead provide them time to comply with the new directive.

While U.S. War Secretary Pete Hegseth said on Monday the U.S. would not rule out using military force against Iran, the country is turning towards more economic coercion, which analysts said removed concerns about threats to Middle Eastern oil supply because ‌of ⁠the war.

Highlighting those threats, an oil tanker was struck on Tuesday ⁠by an unidentified projectile and disabled about 9 nautical miles (16.7 km) northeast of Oman's Ash Shishah, the United Kingdom Maritime Trade Operations said.

Iran is still maintaining it should have control over the key Strait of Hormuz, which before the war started in February typically carried cargoes equal to about ⁠20% of global oil use. On Monday, it named 45 tankers that had broken its rules on crossing the strait and threatened action against them, including confiscating their cargoes.



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