Oil holds decline as US tightens Iran sanctions
Crude trades near $85 per barrel after a more-than-2% prior-session drop as the US expands sanctions aimed at isolating Iran and pressuring partners over Strait of Hormuz reopening.
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Brent crude traded near $92 per barrel on Tuesday after falling more than 2% in the previous session, as the US intensified economic pressure on Iran and its trading partners in an effort to force the reopening of the Strait of Hormuz.
Treasury Secretary Scott Bessent announced plans to isolate Iran through sanctions targeting countries that continue doing business with the Islamic Republic, while President Donald Trump said those nations would be given a specific timeline to sever ties with Tehran or face unilateral US penalties.
However, markets remain uncertain over whether the US measures will help accelerate or instead delay a potential resolution to the US-Iran conflict and the full reopening of Hormuz.
Meanwhile, risks to energy flows in the Middle East remain elevated, with the UK Navy reporting that an oil tanker was struck and disabled near Oman, while Iran-backed Houthi militants said they had fired on a Saudi Arabian supertanker sailing through the Red Sea.