Oil Retreats After Bessent Lays Out Iran Sanctions Plan

WTI crude and Brent both pulled back Tuesday after Treasury Secretary Scott Bessent outlined the administration's plan to increase economic pressure on Iran. Bessent said any country doing business with Tehran faced the risk of U.S. sanctions. President Trump, he added, was calling world leaders to demand they cease their interactions with Iran, and that countries would receive a defined timeline to comply.

The retreat followed a run-up that had pushed both benchmarks toward multi-month highs. The threat of secondary sanctions had been widely anticipated, and Bessent's confirmation gave longs a reason to take profits, traders said. WTI had tested resistance at $86.00–$86.50 several times without breaking through. It was trying to hold above $85.00 late Tuesday. A break below that level would open a path toward $81.50–$82.00, with the 50-day moving average at $78.62 as the next major test. On the upside, a sustained move above $86.50 would shift momentum toward the $91.00–$91.50 zone.

Brent crude eased from its highs, with support near $91.00–$91.50. A break lower would target $86.00–$86.50, then the 50-day MA at $83.47. The RSI sits in moderate territory, leaving room for further downside if selling accelerates.