Oil prices steady after supply concerns subside even as US plans new Iran sanctions; Brent at $90/bbl

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Brent to $92.18 last week -its highest since October. But prices retreated on Monday after Iran's attack on Israel over the weekend proved to be less damaging than anticipated. Brent crude futures for June delivery last rose five cents, or 0.1 per cent, to $90.15 per barrel while US crude for May gained 14 cents, or 0.2 per cent, to $85.55.

Coming to domestic prices, crude oil futures rose 0.38 per cent higher at ₹7,142 per barrel on the multi commodity exchange (MCX). -US Treasury Secretary Janet Ellen said she intends to hit Iran with new sanctions in coming days due to its unprecedented attack on Israel, and it could seek to reduce Iran's capacity to export oil. “With respect to sanctions, I fully expect that we will take additional sanctions action against Iran in the coming days,'' said Yellen.

-Israel's war cabinet was set to meet for the third time in three days on Tuesday, an official said, to decide on a response to Iran's attack, amid international pressure to avoid further escalating the conflict in the Middle East. -Iran produces more than 3 million barrels per day (bpd) of crude oil as the third-largest producer within the Organization of the Petroleum Exporting Countries (OPEC) cartel. Iran will respond to any action against its interests, President Ebrahim Raisi was reported as saying by the Iranian Student News Agency a day after Israel warned it will respond to Tehran's missile attack.

-Analysts said that the balancing act between sticky inflation, a hesitant Fed and the gradual move towards a full-blown regional conflict keeps oil ... in its range. Material disruption to oil production, supply or shipping must take place to approach the $100 a barrel milestone.