Oil steadies as investors weigh impact of latest US sanctions on Iran

Oil prices recovered some ground on Tuesday after falling more than 2 per cent in the previous session, Business Recorder reported. At 0330 GMT, Brent crude futures were 27 cents higher at $92.44 per barrel, while US West Texas Intermediate gained 37 cents to $85.38. Both benchmarks had closed lower on Monday, when US crude hit a one-week low as traders took profits after two weeks of gains.

Investors weighed the latest expansion of US sanctions against Iran. Treasury Secretary Scott Bessent announced the measures on Monday, telling countries they must cut business ties with Iran or lose access to the dollar-based financial system. Bessent did not name the targeted countries or say when penalties would apply, giving them time to comply. ING strategists said the market appeared largely unfazed by the sanctions.

Iran continues to say it should control the key Strait of Hormuz, which carried about 20 per cent of global oil use before the war began in February. On Monday, Iran named 45 tankers it said had broken its crossing rules and threatened to seize their cargoes. An oil tanker was disabled by an unidentified projectile on Tuesday, about 9 nautical miles northeast of Oman's Ash Shishah. US Department of Energy data showed the Strategic Petroleum Reserve fell by roughly 3.7 million barrels, leaving crude stocks at 289.7 million barrels last week, the lowest since November 1982.