Oil prices retreated on Tuesday after Brent crude surged nearly 6% the previous day. Traders are closely assessing the latest developments in the Middle East, including U.S. strikes on Iranian fast boats, Iran’s attack on a UAE oil facility, and the latest ceasefire negotiations.

According to CNBC, oil gave back some of Monday’s sharp gains in Tuesday’s trading. The previous day’s spike was driven by the dramatic escalation of tensions in the Strait of Hormuz, pushing international oil prices to their largest single-day gain in months.

Shipping company Maersk confirmed that one of its U.S.-flagged commercial vessels successfully exited the Strait of Hormuz under U.S. military escort. This news somewhat eased market concerns about potential disruption to global crude shipping.

However, the overall situation remains highly uncertain. U.S. President Trump threatened to blow Iran off the face of the earth if it attacks U.S. vessels, further fueling market anxiety about the safety of passage through the strait.

Al Jazeera reported that Brent crude rose nearly 6% in the previous trading session, reflecting investor panic about the potential disruption of the world’s most important oil shipping corridor. The Strait of Hormuz carries approximately 21 million barrels of oil per day, representing about one-third of global seaborne oil supply.

Market analysts note that despite Tuesday’s pullback, volatility will remain elevated until the situation clarifies. If ceasefire negotiations progress, oil prices could fall sharply; conversely, if conflict continues to escalate, prices could break through previous key resistance levels.

Shares of major energy companies showed divergence in Tuesday’s trading: upstream exploration and production companies benefited from high oil price expectations, while refining and transportation firms faced pressure from rising costs and supply chain uncertainty.

Source: CNBC, Al Jazeera

On April 30, 2026, international oil prices experienced a dramatic surge, with Brent crude breaking through the $126 per barrel mark — the highest level since 2022. The spike was driven directly by escalating military tensions between the United States and Iran, and ongoing U.S. pressure on the Strait of Hormuz blockade.

Military Signals Behind the Oil Surge

According to CNBC and Bloomberg, the immediate trigger for the price surge was widespread reporting that senior U.S. military commanders would brief President Trump on new military options against Iran later today. Axios, citing sources familiar with the matter, reported that the briefing would cover multiple scenarios, including a “short and powerful” strike plan.

CNN’s live updates reported that Trump is considering extending the blockade of Iranian ports and has rejected Iran’s reconciliation proposals. In an exclusive report, Axios stated that Trump has made clear the blockade will remain in place until a nuclear deal is reached.

Pentagon Discloses War Costs

Meanwhile, the Pentagon disclosed for the first time the cumulative cost of the Iran conflict during a congressional hearing. According to The New York Times, Defense Secretary Hegseth’s report to Congress estimated that military operations to date have cost approximately $25 billion.

At the House Armed Services Committee hearing, Hegseth fired back at lawmakers questioning the war’s expenditures, labeling them “defeatist.” The remarks drew widespread criticism from both sides of the aisle.

Hormuz Strait Shipping at a Standstill

A diplomatic cable obtained by Reuters reveals that the United States is seeking to build a new international coalition to restore shipping through the Strait of Hormuz. The Wall Street Journal similarly reported that as traffic through the strait continues to stall, the U.S. is proposing new coordination frameworks to allied nations.

Approximately one-fifth of global oil shipments pass through the Strait of Hormuz. The ongoing blockade has severely disrupted global energy supply chains, with crude-importing nations in Europe and Asia facing mounting supply pressures.

Market Response and Outlook

Energy analysts note that if the Hormuz blockade persists for several more weeks, Brent crude could climb further toward $135 per barrel. Federal Reserve officials have already incorporated geopolitical risk into their interest rate decision-making, and market concerns about rising global inflation are intensifying.

In a separate development, Putin warned Trump that further military action against Iran would bring “dire consequences,” adding another layer of uncertainty to an already volatile situation.

Source: CNBC · Bloomberg · CNN · The New York Times