By: Economy Middle east

Oil prices declined Tuesday following Monday’s sharp advance, as investors balanced region escalation against U.S. stabilization efforts for Strait of Hormuz shipping.

By 9:51 UAE time, Brent July futures eased 0.68 percent to $113.46 per barrel, while West Texas Intermediate crude futures tumbled 1.96 percent to $104.33 per barrel.

Monday saw Brent surge over 4 percent with WTI closing roughly 6 percent higher, propelled by intensifying U.S.-Iran conflict including energy infrastructure strikes and attacks on Hormuz-transiting vessels.

Fragile market sentiment persisted after Monday’s renewed military exchanges, effectively breaking a tenuous ceasefire and amplifying prolonged supply disruption fears.

Traders assessed President Donald Trump‘s “Project Freedom” initiative to assist Gulf-stranded vessels, aiming to chart safer routes and partially restore Hormuz flows.

U.S. military confirmed initial ship escorts through the strait under the operation, with forces actively clearing commercial shipping lanes.

Analysts observed “Project Freedom” may alleviate logistical constraints but fails to address core geopolitical conflict, maintaining oil market hypersensitivity to additional military escalations.