Oil prices remained steady on Tuesday after sliding more than 2% the previous day, with investors weighing the potential impact of tougher US sanctions on Iran against ongoing risks to oil supplies.Brent crude gained 0.09% to $92.25 a barrel while WTI crude was 0.35% up to $85.31 a barrel.The two benchmarks had fallen more than 2% on Monday. Supply concerns remained in focus after the United Kingdom Maritime Trade Operations said that an oil tanker was hit by an unidentified projectile and disabled about 9 nautical miles (16.7 km) northeast of Oman’s Ash Shishah on Tuesday.The incident came as tensions around the Strait of Hormuz continued. Iran maintains that it should control the key waterway, which before the war began in February typically carried cargoes equal to about 20% of global oil use.Iran on Monday also identified 45 tankers it said had violated its rules for crossing the strait and warned that it could take action against them, including confiscating their cargoes.At the same time, the US stepped up economic pressure on Iran. Treasury secretary Scott Bessent announced an expansion of sanctions designed to cut off Iran’s economic lifeline and force an end to the war between the two countries.Bessent said countries would have to end their business ties with Iran or risk losing access to the dollar-based financial system. He did not, however, name the countries that would face the measures or say when they would come into effect, saying they would be given time to comply with the new directive.The US has also kept the possibility of military action open. Defense secretary Pete Hegseth said on Monday that the US would not rule out using military force against Iran. Analysts cited by Reuters said the shift towards economic coercion had reduced concerns over threats to Middle Eastern oil supplies arising from the war.The conflict has already put pressure on oil reserves, with countries drawing down their commercial and strategic stockpiles following supply disruptions caused by the US-Israeli war on Iran that began on February 28.US crude reserves held in the strategic petroleum reserve fell by about 3.7 million barrels last week to 289.7 million barrels, the department of energy reported on Monday. That was the lowest level since November 1982.Meanwhile, though oil prices have stayed volatile amid the ongoing Middle East chaos, the spike is far lower than the $126 per barrel levels seen earlier in the conflict.
