-- Crude oil prices eased on Tuesday after surging in the previous session as US and Iranian forces exchanged fire in the Persian Gulf, threatening a month-old ceasefire.
Front-month Murban crude futures edged up 0.4% to $107.70 per barrel, while Brent futures dropped 1% to $113.29/bbl.
Reports said there was an attack on a US warship and an Iranian drone strike on the UAE's Fujairah oil terminal.
Analysts noted that the oil market remains on high alert following news of an attack on a US Navy vessel.
The hostilities broke out as the US initiated a mission to extract commercial ships currently trapped within the Persian Gulf.
US Central Command reportedly confirmed that two American merchant ships successfully completed their transit through the Strait of Hormuz.
However, analysts warned that a subsequent direct fire exchange between US and Iranian forces now endangers the survival of the ceasefire established four weeks ago.
The regional fallout intensified as the UAE reported its first defensive interceptions of Iranian missiles and drones since the April 8 ceasefire began.
However, one Iranian drone successfully struck an oil terminal at the Port of Fujairah, sparking a major fire at the facility.
Record-breaking supply losses of 10 million barrels per day have already depleted global inventories, and experts warn that if the Strait remains obstructed, this crisis could extend through late 2026 and into 2027.