Global oil prices recorded a slight decline on Tuesday as investors assessed the possible impact of tougher US secondary sanctions on Iran. The move came after both major benchmarks fell more than 2% a day earlier.

Brent crude for September delivery slipped 9 cents, or 0.1%, to $92.16 a barrel. US West Texas Intermediate (WTI) crude gained 1 cent to $85.02 a barrel.

Monday’s sharp decline pushed US crude to its lowest level in a week. Analysts attributed the fall partly to profit-taking after a strong rally over the previous two weeks.

US tightens pressure on Iran

US Treasury Secretary Scott Bessent announced an expansion of sanctions against Iran, saying the measures aim to restrict key sources of Tehran’s economic revenue and increase pressure to end the conflict.

He warned that countries continuing business with Iran could face the risk of losing access to the US dollar-based financial system.

KCM Chief Market Analyst Tim Waterer said investors currently view economic pressure as less threatening to actual oil supplies than military action, helping explain why prices fell after the sanctions announcement.

Tanker incident raises supply fears

However, Waterer warned that Iran could still disrupt maritime traffic, keeping some risk premium in oil prices.

The UK Maritime Trade Operations agency also reported that an oil tanker was hit by an unidentified projectile near Oman, leaving the vessel disabled.

Meanwhile, US Strategic Petroleum Reserve stocks fell by about 3.7 million barrels last week to 289.7 million barrels, their lowest level since November 1982, according to the US Department of Energy.