Oil prices steady after sharp sell-off as Iran sanctions take focus

Oil prices held steady on Tuesday after a fall of more than 2 per cent in the previous session, according to Mettis Global. Brent crude futures were 1.64 per cent lower at $92.84 per barrel, while West Texas Intermediate futures dropped $0.27 to $85.09 per barrel. Both benchmarks had declined by over 2 per cent on Monday as traders took profits after a strong two-week rally.

U.S. Treasury Secretary Scott Bessent announced an expanded set of sanctions on Monday, aiming to curb Iran's economic activity and push Tehran to end the conflict. According to CNBC, countries that keep trading with Iran could lose access to the dollar-based financial system, but Bessent did not name any nations or set timelines. Defense Secretary Pete Hegseth said Washington has not excluded military action against Iran.

Market participants saw economic pressure as a smaller immediate threat to physical supplies than direct military action, yet shipping concerns kept prices supported. On Tuesday an oil tanker was hit by an unidentified projectile near Oman's Ash Shishah and disabled, according to the UK Maritime Trade Operations. Iran continues to control the Strait of Hormuz, a route that carried roughly 20% of global oil consumption before the war began in February, and US Strategic Petroleum Reserve stocks fell to 289.7 million barrels, their lowest since November 1982.