US Sanctions Send Oil Prices into a Holding Pattern

Oil prices stabilized on Tuesday after plummeting over 2% in the previous session as investors weighed the impact of expanded US sanctions against Iran.

The Brent crude futures were down by 9 cents or 0.1% at $92.16, while U.S. West Texas Intermediate crude was up 1 cent at $85.02 a barrel.

The price drop on Monday was attributed to profit taking after oil prices rallied over the previous two weeks.

US Treasury Secretary Scott Bessent unveiled an expansion of sanctions to cut off Iran's economic lifeline, forcing an end to the war between them by severing business ties or risking being cut out of the dollar-based financial system.

However, he declined to identify countries that would be targeted or reveal when those penalties would take effect, giving them time to comply with the new directive.

US Defense Secretary Pete Hegseth said on Monday that the US would not rule out using military force against Iran, but analysts believe economic pressure is a lower-risk path for physical supply disruption than kinetic action.