Oil prices stabilised on Tuesday after falling sharply in the previous session, with Brent crude trading near $92 a barrel as markets assessed tighter US economic measures against Iran and continued disruption to energy shipments through the Strait of Hormuz.nWest Texas Intermediate (WTI) crude was trading around $85 a barrel. Brent had declined more than 2 per cent in the previous session. Crude prices have risen more than 50 per cent this year as the six-month conflict between the US and Iran has disrupted shipments of crude oil and refined petroleum products from the Middle East.
Hormuz Disruption Keeps Supply Risks Elevated
The US has intensified economic pressure on Iran, with Treasury Secretary Scott Bessent saying countries doing business with Tehran would be given a specific period to wind down those relationships or potentially face unilateral penalties. The US Office of Foreign Assets Control sanctioned around 60 entities on Monday linked to Iran's oil-revenue networks and vessels associated with its shadow fleet. The impact of the measures on crude supplies remains uncertain, particularly given China's role as the largest buyer of Iranian oil. The market is also watching whether additional US pressure could help restore energy flows through the Strait of Hormuz or further increase regional tensions.
Shipping risks in the region remain elevated. An oil tanker was struck and disabled by a projectile northeast of Ash Shishah, Oman, in the Hormuz region, according to the UK Navy. Separately, Iran-backed Houthi militants claimed an attack on a Saudi Arabian supertanker in the Red Sea, adding to concerns over shipping security along another major energy trade route. Iran has indicated that it is prepared for further economic pressure from the US, even as the country faces fuel shortages and longer queues at petrol stations. With uncertainty surrounding the Strait of Hormuz and tighter restrictions on Iranian oil trade, developments in the region continue to influence crude prices and global supply expectations.