Oil prices rebounded more than $1 a barrel on Tuesday, lifted by new U.S. sanctions on Iran and a rally in equity markets that helped recover some of the previous session’s losses. Brent crude settled $1.18, or 1.8%, higher at $67.44 per barrel. U.S. West Texas Intermediate (WTI) for May delivery, which expired at settlement, rose $1.23, or 2%, to close at $64.32. The more actively traded June WTI contract also climbed 2% to $63.47.
The U.S. imposed fresh sanctions targeting an Iranian shipping magnate involved in transporting crude and liquefied petroleum gas, signaling Washington’s continued pressure on Tehran despite recent progress in nuclear negotiations.
“Either a nuclear deal is reached, or the U.S. pushes Iran’s oil exports toward zero,” said John Kilduff, partner at Again Capital. “Right now, the scenario looks increasingly like zero-flow.”
Oil prices also found support from a sharp rise in U.S. equities, which suggested a shift in investor sentiment after Monday’s broad risk-off selloff, driven in part by President Donald Trump’s renewed criticism of Federal Reserve Chair Jerome Powell.
Despite Tuesday’s recovery, concerns over global economic growth continued to cast a shadow. The International Monetary Fund cut its global outlook, citing tariffs at century-high levels and escalating trade tensions between Washington and Beijing.
“U.S. tariffs risk slowing global trade, disrupting supply chains, and raising costs in energy-intensive industries—all of which could significantly weigh on oil demand,” said Marcus McGregor, head of commodities research at Conning.
U.S. Treasury Secretary Scott Bessent said he expects tensions with China to eventually de-escalate but acknowledged that trade talks have yet to begin and are likely to be “a slog.”
Elsewhere, Russia’s economy ministry lowered its Brent crude price forecast for 2025 by nearly 17% from its earlier projection, reflecting a more cautious view of global oil fundamentals.