Global oil prices rose more than two percent on Tuesday, recovering from losses recorded in the previous trading session.
The increase followed growing concerns over crude oil supply disruptions linked to tensions around the Strait of Hormuz.
The waterway is a major global shipping route used for transporting crude oil and other petroleum products.
Reports indicate the Strait of Hormuz is largely restricted, raising fears about delays in global oil shipments.
Read Also: Iran Strait of Hormuz Oil Threat: Three Vessels Set Ablaze
The situation has also raised concerns about possible disruptions to international energy supply chains.
The United States had reportedly urged its allies to deploy warships to escort oil tankers.
However, several U.S. allies declined the request to send naval forces to the region.
Analysts say the decision increased uncertainty about tanker security along the important shipping route.
Energy markets often react strongly to geopolitical tensions affecting major oil transportation corridors.
Traders are closely monitoring developments in the Gulf region for signs of further escalation.
Market analysts say continued instability around the waterway could push oil prices higher in coming days.
