Middle East Standoff Drives Oil Prices Above $90
Oil prices have stabilized after a significant drop on Monday, with Brent crude holding above $90 per barrel. The price of Brent crude gained 0.09% to reach $92.25, while WTI crude rose by 0.35% to $85.31.
The steady oil prices come as tensions in the Middle East continue to escalate. A tanker was hit by an unidentified projectile and disabled near Oman's Ash Shishah on Tuesday, further increasing supply concerns. The Strait of Hormuz is a key waterway that carries around 20% of global oil use, with Iran insisting it should control the passage.
The US has stepped up economic pressure on Iran, announcing an expansion of sanctions designed to cut off its economic lifeline and force an end to the war between the two countries. Treasury Secretary Scott Bessent stated that countries would have to end their business ties with Iran or risk losing access to the dollar-based financial system.
The conflict has already put pressure on oil reserves, with commercial and strategic stockpiles being drawn down following supply disruptions caused by the US-Israeli war on Iran. The US Strategic Petroleum Reserve fell by 3.7 million barrels last week to 289.7 million barrels, its lowest level since November 1982.