Oil prices remain volatile as Middle East tensions shake markets

Brent crude oil futures slipped on Tuesday but remained close to $114 per barrel as renewed hostilities in the Middle East kept global energy markets on edge. Investors continued to closely monitor the escalating US-Israel-Iran conflict and its impact on oil supply routes, particularly the strategic Strait of Hormuz.

Brent crude fell by 93 cents, or 0.8%, to $113.51 per barrel after surging nearly 5.8% in the previous session. Meanwhile, US West Texas Intermediate (WTI) crude dropped $2.16, or 2%, to $104.26 per barrel following a 4.4% gain earlier.

Market analysts said price movements remain highly volatile due to ongoing geopolitical tensions rather than changes in supply-demand fundamentals. According to analysts, the temporary easing in prices reflects short-term sentiment rather than any real improvement in global oil stability.

Iran crew returned after maritime dispute over seized vessel

The Strait of Hormuz, a vital maritime chokepoint connecting the Gulf to global markets, remains at the center of the crisis. Around 20% of global oil and gas supply passes through this route daily, making it extremely sensitive to military developments.

Reports suggest both the United States and Iran launched new maritime operations and attacks in the Gulf, further straining a fragile ceasefire. The US recently initiated an operation aimed at reopening shipping lanes, while Iran has responded with countermeasures, including strikes in the region.

Although limited shipping movement has resumed under military escort, experts caution that this does not indicate a full stabilization of the situation. Several commercial vessels have reportedly been damaged, and energy infrastructure in parts of the Gulf has also been affected.

Analysts also noted that while political statements hint at a possible timeline for de-escalation, market confidence remains weak due to repeated shifts in expectations and continued uncertainty over the duration of the conflict.