Crude oil prices jumped again on Tuesday as tensions in the Middle East escalated and countries resisted former Donald Trump’s call to help reopen the key Strait of Hormuz, which Iran has effectively closed.
The price gained partially recovered losses from the previous day, when the International Energy Agency (IEA) suggested more stockpiles could be released if needed.
Meanwhile, equities continued to rise as tech firms, led by Nvidia, forecasted record revenue growth through 2027.
President Donald Trump urged European and other allies to secure the waterway, describing it as a “team effort,” but only a lukewarm response emerged.
German Chancellor Friedrich Merz said the crisis was “not a matter for NATO,” while countries including the UK, Spain, Poland, Greece, and Sweden distanced themselves. Australia and Japan also opted not to join.
The U.S. president warned of consequences for NATO cooperation if allies refused.
He also postponed a summit with Xi Jinping by about a month over the issue.
As a result, Brent crude and West Texas Intermediate both rose over 2 per cent, hovering around $100 per barrel.
The IEA previously authorized a record release of 400 million barrels of crude to stabilize markets.
Meanwhile, attacks continued across the region: drones struck oil fields in the United Arab Emirates and Iraq, Israel launched strikes on Tehran and Hezbollah targets in Beirut, and the U.S. embassy in Baghdad faced drone and rocket attacks.
Despite these risks, Asian and Western equities remained resilient, driven by strong tech earnings and global market optimism.
Analysts cautioned that while developments like the tanker transit through Hormuz and IEA measures provided some relief, the situation did not signal a true de-escalation.
The market remained sensitive to Middle East geopolitical risks and the potential impact on global energy supply.
