Oil prices rebound over new Iran sanctions and stock market gains
Oil prices climbed more than $1 a barrel on Tuesday, recovering from the previous session’s steep losses, as new U.S. sanctions on Iran and a rally in global equities reignited investor appetite.
Brent crude rose $1.74 to $68 per barrel, while U.S. West Texas Intermediate gained $1.96 to $65.04 for May delivery, and the June contract advanced $1.92 to $64.33.
The rebound followed Washington’s fresh sanctions targeting an Iranian oil shipping magnate and his network, deepening uncertainty over Tehran’s crude exports even as nuclear talks showed limited progress.
Analysts warned that failure to reach a diplomatic deal could push Iranian oil flows to near zero under tightening U.S. restrictions.
Oil prices also drew strength from a broad recovery in equity markets, as investors shifted focus to corporate earnings despite ongoing geopolitical risks and mounting concerns over the global economy.
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Monday’s selloff had been triggered by signs of progress in U.S.-Iran negotiations and a sharp decline in stock markets, but the new sanctions and equity rally offered short-term support.
Still, analysts cautioned that escalating U.S. tariffs and global trade tensions remain a major threat to demand, while Russia’s recent downgrade of its Brent crude forecast for 2025 added further uncertainty to the outlook.
