Oil prices pulled lower on Tuesday, as the US imposed a fresh round of sanctions on Iran, heightening concerns that global supply could tighten.

Brent crude futures fell by 0.2% to $74.16 per barrel, while US West Texas Intermediate (WTI) crude lost 0.2%, falling to to $70.65 per barrel.

The lukewarm performance follows the US Treasury’s announcement on Monday that it had imposed new sanctions targeting Iran’s oil industry, specifically targeting brokers, tanker operators, and shippers involved in selling and transporting Iranian petroleum.

Iran, which is the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), produced 3.2 million barrels per day in January, according to a Reuters survey of OPEC output.

However, further price gains were limited by a murky demand outlook.

“We’re just clearing out room to trade lower and I would be cautious if I was a buyer in the market today,” Mizuho analyst Robert Yawger said.

“Just sitting here, waiting for the next big event to happen, and obviously there are plenty of big ones out there that could hit any moment.”