Oil Prices Edge Higher Amid US-Iran Tensions
Oil prices saw a marginal gain on Tuesday after falling over 2% in the previous session. Investors were weighing the impact of US economic sanctions on Iran, which could disrupt Middle Eastern oil supplies.
Brent crude futures rose by 6 cents to $92.16 a barrel, while U.S. West Texas Intermediate crude increased by 15 cents to $85.12. Both contracts fell more than 2% on Monday, with US crude reaching a one-week low as investors took profits following a rally over the previous two weeks.
US Treasury Secretary Scott Bessent announced an expansion of sanctions aimed at cutting off Iran's economic lifeline and forcing an end to the war between the two countries. He said that countries would have to sever their business ties with Iran or risk being excluded from the dollar-based financial system.
Tensions remain high, as an oil tanker was struck by an unidentified projectile and disabled northeast of Oman's Ash Shishah. Iran continues to insist on controlling the Strait of Hormuz, which carries about 20% of global oil consumption.