Oil prices experienced sharp gains as tensions flared across the Middle East, pushing ceasefire efforts to the brink. Brent crude spiked more than 5 percent, rising nearly 6 percent to trade above US$114 a barrel.
The surge was driven by continued disruptions to oil supplies through the Strait of Hormuz, with renewed attacks targeting energy infrastructure and vessels. Escalating conflicts saw the United States and Iran exchange fire, while the UAE was hit by drone strikes.
However, oil prices declined on Tuesday, retreating from the previous session's sharp increases. Analyst Patrick O’Hare stated that the rising Middle East tensions became an excuse for investors to take some money off the table.