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Global oil prices climbed again on Tuesday, reversing earlier losses as supply concerns deepened with the Strait of Hormuz remaining closed for a third week amid the Iran war.
Brent crude rose 4.3% to $104.56 per barrel, while U.S. benchmark WTI increased 4.7% to $97.9 per barrel. The gains came after a volatile start to the week, when prices briefly fell on expectations of coordinated stockpile releases.
The rebound came despite comments from International Energy Agency head Fatih Birol, who said additional reserves could be released if needed, after member countries had already approved a record 400 million barrels from strategic stockpiles to ease price pressures linked to the U.S.-Israeli conflict with Iran. However, markets remained focused on the scale of the disruption.
The Strait of Hormuz, which typically carries around one-fifth of global oil shipments, remains shut, creating the largest supply shock on record.
To alleviate pressure on energy markets, U.S. President Donald Trump urged allies to take part in efforts to reopen the waterway, describing the task as a shared responsibility. However, responses from key partners remained limited.
German Chancellor Friedrich Merz said the conflict triggered by U.S.-Israeli strikes on Iran was not a NATO matter. Several European countries, including the United Kingdom, Spain, Poland, Greece and Sweden, distanced themselves from the proposal, while Australia and Japan also declined to participate.
Trump warned that a lack of support could have consequences for NATO’s future and said he had postponed a planned meeting with Chinese President Xi Jinping by about a month due to the situation.
Investors are now watching central bank decisions expected this week, particularly from the U.S. Federal Reserve and the Bank of Japan, as policymakers weigh possible interest rate increases to contain inflation driven by rising energy costs, with the U.S. dollar index remaining above 100, its highest level since April 2025.
Asian equity markets showed mixed performance. Japan’s Nikkei 225 remained flat, while South Korea’s Kospi gained 1.6%. Hong Kong’s Hang Seng edged up 0.2%, whereas China’s Shanghai Composite declined by 0.8%.
In Europe, the Stoxx 600 index fell 0.4%, while U.S. futures pointed lower, dropping 0.5% after gains of around 1% in major indices the previous day.
Gold held steady at $5,010 per ounce, while silver rose 0.3% to around $81. Platinum increased 1% to $2,139.60, and palladium was unchanged at $1,607.64.
Cryptocurrency markets showed modest activity, with bitcoin holding at $74,253 and Ethereum rising 0.5% to $2,321.19. Total market capitalization increased by 0.7% to $2.5 trillion.
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