Oil prices climbed more than $1 per barrel on Tuesday, rebounding from the previous session’s sharp decline.
The rise followed fresh U.S. sanctions against Iran and a surge in equity markets, signaling renewed investor confidence.
Brent crude futures rose by $1.74, or 2.6%, reaching $68 per barrel by midday. The May U.S. West Texas Intermediate (WTI) crude contract, set to expire Tuesday, gained $1.96, or 3.1%, to settle at $65.04. The more actively traded June WTI contract increased by $1.92, or 3.1%, to $64.33.
The U.S. issued new sanctions targeting a prominent figure in Iran’s liquefied petroleum gas and crude oil shipping sector, along with his associated corporate network. These measures come amid ongoing negotiations over Iran’s nuclear program.
While recent discussions made some headway, no final agreement has been reached, raising concerns that Iranian oil exports could face further constraints.
In financial markets, U.S. stocks advanced as attention shifted back to corporate earnings. This helped bolster crude prices after a sharp equities selloff in the previous session had contributed to oil’s Monday losses, when both Brent and WTI dropped more than 2%.
Despite Tuesday’s rebound, global oil markets remain under pressure from broader economic concerns. The International Monetary Fund cut its growth forecast for the year, citing historically high U.S. tariffs and escalating trade tensions.
In addition, Russia’s economy ministry lowered its projection for Brent crude’s average 2025 price by nearly 17% from its earlier estimate. In the U.S., preliminary data suggested that crude oil and gasoline stockpiles declined last week, while distillate inventories rose.
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