WTI crude oil futures slipped toward $73.80 per barrel on Tuesday, trimming steep earlier gains after President Trump’s pledge to deploy naval escorts for tankers in the Strait of Hormuz eased immediate supply fears. Prices had surged more than 8% earlier in the session following drone attacks on Saudi Arabia’s Ras Tanura refinery and fires at the UAE’s Fujairah oil hub, but the US military commitment to safeguard energy shipments prompted a sharp pullback from intraday highs.
Even after the reversal, crude remains near its highest levels since June, as vessel traffic through the Persian Gulf is still largely paralyzed and insurers have withdrawn war-risk coverage. This ongoing logistical gridlock blunts the impact of the escort announcement, with about one-fifth of global oil consumption still perceived to be at risk.
Adding to the tension, the death of Iran’s Supreme Leader and a subsequent four-day escalation of strikes on key Gulf energy facilities continue to stoke volatility. Market attention is now centered on the robustness of UAE air defenses amid a sustained barrage of missiles launched by Tehran-backed forces.
