Global benchmark Brent crude futures rose 21 cents, or 0.28%, to $76.17.
US oil pares losses as Trump set to reimpose 'maximum pressure' on Iran
U.S. oil prices pared earlier losses on Tuesday after an official said U.S. President Donald Trump plans to restore his "maximum pressure" campaign on Iran in a bid to drive down Iranian oil exports to zero, which offset some weakness from tariff drama between Washington and Beijing.
The U.S. official told Reuters that Trump's directive orders the U.S. Treasury secretary to impose "maximum economic pressure" on Iran, including sanctions and enforcement mechanisms on those violating existing sanctions.
U.S. West Texas Intermediate (WTI) crude was trading down 48 cents, or 0.66%, at $72.68 a barrel by 1:02 p.m. EST. It fell more than 3% to its lowest since late December during the session, amid trade war fears between the U.S. and China.
Global benchmark Brent crude futures rose 21 cents, or 0.28%, to $76.17.
The reimposition of "maximum pressure" on Iran is capping losses from the tariff drama going on between Beijing and Washington right now, according to Phil Flynn, analyst at Price Futures Group.
"The reason why oil was down near the lower end of the trading range was the China retaliation, and it went back up because of the "maximum pressure" on Iran," Flynn said.
Iranian crude exports shot to the highest level in years in 2024 as the country found ways to sidestep punitive sanctions targeting its revenue.
