Oil prices steadied after a sharp drop in the previous session as the US stepped up economic pressure on Iran, but Washington's latest measures offered little clarity on when — or whether — crude flows through the Strait of Hormuz will return to normal.
Brent crude traded near $92 a barrel on Tuesday, while West Texas Intermediate hovered around $85. Brent had fallen more than 2% in the previous session. The market remains focused on whether the latest US measures can ease the disruption in one of the world's most important energy corridors.
US Treasury Secretary Scott Bessent said countries dealing with Iran would be given a specific timeline to wind down those links or face unilateral penalties. He described the campaign as an “economic D-Day” aimed at increasing pressure on Tehran.
ALSO READ: Bessent Unveils 'Economic D-Day Sanctions' To Cripple Iran, Warns Global Trading Partners
The stakes for oil markets remain high. Crude prices have climbed more than 50% this year as the conflict between the US and Iran, now in its sixth month, has disrupted shipments of crude and refined products from the Middle East.
A key uncertainty is China's response. Beijing is the largest buyer of Iranian oil, raising the possibility that tougher US measures could widen the confrontation rather than restore the flow of energy through Hormuz.
The US Office of Foreign Assets Control on Monday sanctioned about 60 entities linked to Iran's oil-revenue networks and vessels associated with its so-called shadow fleet.
Iran, meanwhile, has signalled that it is prepared for another round of economic pressure. Economy Minister Seyed Ali Madanizadeh told state television that the country was “fully prepared” for the US campaign, even as Iran faces fuel shortages and longer queues at petrol stations.
Shipping risks remain elevated. The UK Navy said an oil tanker was struck and disabled by a projectile northeast of Ash Shishah, Oman, in the Hormuz region. Separately, Iran-backed Houthi militants claimed an attack on a Saudi Arabian supertanker in the Red Sea.
ALSO READ: 'Out Of Dollar System': US Warns, Global Entities Permitting Iranian Money Laundering
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