Oil steadies as markets assess the impact of expanded US sanctions on Iran

Oil prices stabilized on Tuesday after falling more than 2% in the previous session, as investors assessed the impact of stringent secondary U.S. sanctions against Iran.

Brent crude futures fell nine cents, or 0.1%, to $92.16 per barrel by 0104 GMT, while U.S. West Texas Intermediate crude rose one cent to $85.02 per barrel. Both benchmarks dropped more than 2% on Monday, with the U.S. crude price hitting a two-week low amid profit-taking following a rally over the past two weeks.

U.S. Treasury Secretary Scott Bessent announced on Monday an expansion of sanctions aimed at cutting off Iran’s economic lifeline to force it to end the war between the two countries, stating that countries must sever trade ties with Tehran or risk exclusion from the dollar-based financial system.

Supply disruptions stemming from the U.S.-Israeli war on Iran, which began on February 28, have prompted countries to draw from their commercial and strategic reserves.

The U.S. Department of Energy reported on Monday that crude oil stocks in the U.S. Strategic Petroleum Reserve fell by approximately 3.7 million barrels to 289.7 million barrels last week, marking the lowest level since November 1982.