Oil prices declined slightly on Tuesday, easing around 1 per cent after a sharp rally in the previous session, as market sentiment shifted on reports that US naval operations may be partially restoring shipping access through the Strait of Hormuz.
The benchmark Brent crude futures for July dropped by 51 cents, or 0.5 per cent, to $113.93 per barrel in early trading, following a 5.8 per cent surge on Monday.
Similarly, US West Texas Intermediate (WTI) crude fell $1.55, or 1.5 per cent, to $104.87 per barrel after gaining 4.4 per cent in the prior session.
The decline came after reports that the United States had initiated a new maritime operation aimed at reopening the strategically vital strait, through which nearly one-fifth of global oil supply flows daily.
In a notable development, shipping firm Maersk confirmed that its vehicle carrier Alliance Fairfax successfully exited the Gulf via the Strait of Hormuz under US military escort, easing immediate concerns over supply disruptions.
Market analysts said the movement indicated limited but improving access for commercial shipping, though they cautioned that the situation remained highly unstable and far from a full reopening of the waterway.
Despite the temporary easing of fears, tensions remain high. Iran reportedly launched counterattacks in the Gulf region on Monday, targeting vessels and causing damage to key infrastructure, including an oil facility in the United Arab Emirates.
The ongoing conflict between the US and Iran continues to keep geopolitical risk premiums elevated, with analysts warning that supply constraints could persist. Some traders attributed the slight price fall to profit-taking after recent gains rather than any structural improvement in supply conditions.
Experts also noted that global crude inventories are tightening, with stockpiles nearing multi-year lows, underscoring continued pressure on the energy market despite short-term price fluctuations.
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