On Tuesday, U.S. crude oil prices gained more than 5% following a steep decline the previous day, primarily driven by persisting fears over crude oil supplies from the Middle East due to the conflict with Iran. The ongoing military actions have led to renewed attacks on strategic energy infrastructure, compelling investors to react to the heightened risks. By 6:15 GMT, the price of West Texas Intermediate rose by 5.16% reaching $98.32 per barrel, though it saw a slight subsequent drop.

Meanwhile, benchmark Brent crude also experienced a rise of 4.67%, climbing to $104.90 per barrel before experiencing minor declines. Reports from Bloomberg, citing a shipping agent and an informed source, indicated that loading operations at the port of Fujairah were suspended following a series of assaults targeting the sole oil export route outside the Strait of Hormuz in the UAE. In the previous trading session, Brent futures recorded a 2.8% decrease at settlement, while U.S. West Texas Intermediate dropped by 5.3% after several vessels navigated through the Strait.

The Strait of Hormuz is crucial for global oil and liquefied natural gas trade, accounting for about 20% of worldwide transactions. The ongoing geopolitical tensions and supply chain vulnerabilities are likely to continue affecting global oil prices significantly. Furthermore, as Middle Eastern crude becomes the most expensive in the world, the implications for international markets and energy security are profound, warranting close monitoring by economists and policymakers alike.