Crude oil steadied above $78 per barrel on Tuesday after gaining more than 4% earlier in the session and following a 9.4% surge the previous day, as markets assessed renewed Middle East supply risks.
The collapse of the US-Iran truce and fresh attacks on shipping through the Strait of Hormuz increased concerns over disruptions at the key energy chokepoint.
The United Arab Emirates reported that two oil tankers were struck while using the southern shipping lane, highlighting risks to one of the region’s main export routes.
Tracking vessel movements has become more difficult as some ships operate without active transponders.
The US also announced plans to resume a blockade on Iranian oil exports and potentially charge vessels using Hormuz under American protection.
Despite the tensions, Iran continued moving oil through the strait, while the UAE boosted production to 3.8 million barrels per day in June after increasing exports through alternative shipping arrangements.