LONDON: Global oil prices resumed their upward trend on Tuesday as tensions in the Middle East persisted and several US allies pushed back against calls by President Donald Trump to help secure the strategic Strait of Hormuz.
Crude prices rose more than two percent, hovering around $100 per barrel, as the ongoing conflict involving Iran continued to disrupt regional energy supplies.
The gains partially reversed losses from the previous session, when International Energy Agency chief Fatih Birol indicated that additional strategic oil reserves could be released if necessary.
Allies reluctant to support US plan
Trump has urged allies in Europe and Asia to assist in reopening the Strait of Hormuz, a critical route for global oil shipments that has been largely disrupted.
However, the response has remained limited. German Chancellor Friedrich Merz said the conflict triggered by US-Israeli strikes on Iran was “not a matter for NATO,” while countries including the United Kingdom, Spain, Poland, Greece and Sweden distanced themselves from the proposal.
Australia and Japan have also opted not to participate.
Trump warned that refusal by allies to support the initiative could negatively impact the future of NATO and indicated he may delay a planned meeting with Chinese President Xi Jinping.
Attacks continue across region
The conflict showed no signs of easing, with continued attacks on energy infrastructure and military targets across the region.
Drone strikes targeted oil facilities in the United Arab Emirates and Iraq, while Israel reported launching a large-scale wave of strikes in Tehran and against Hezbollah in Beirut.
A separate drone and rocket attack also targeted the US embassy in Baghdad, according to security officials.
Stock markets show resilience
Despite rising oil prices, global equity markets remained resilient, supported by gains in the technology sector.
Chipmaker Nvidia boosted investor sentiment after projecting $1 trillion in revenue by 2027, helping lift stock markets across Asia, including Seoul, Tokyo, Hong Kong and Shanghai.
Analysts, however, cautioned that market confidence remains fragile due to uncertainty surrounding the conflict and its impact on global energy supplies.
Investors are also closely watching upcoming monetary policy decisions by major central banks, as rising oil prices could lead to renewed inflationary pressures and potential interest rate hikes.