Oil prices climbed on Tuesday after their first drop in nearly a week, as Iran intensified attacks on energy infrastructure around the Persian Gulf. Brent crude rose above $103 a barrel, rebounding from a 2.8% drop on Monday, while West Texas Intermediate hovered near $96. Operations were halted at the Shah oil field in the United Arab Emirates, with additional strikes targeting an Iraqi oil field and a major Emirati port. The attacks, carried out by Iranian drones and missiles, further strained global energy supply. The conflict, now entering its third week, has disrupted shipping through the Strait of Hormuz, a critical passage for oil exports. Prices have surged more than 40% since the war began. Monday’s slight decline followed U.S. plans to release emergency crude reserves to stabilize markets. Rebecca Babin, a senior energy trader at CIBC Private Wealth Group, noted the volatility. “The market is being pulled in all directions by news each day. Traders are trying to gauge how much supply is off the market and for how long,” she said. U.S. President Donald Trump commented on the ongoing conflict from the Oval Office, warning that the war is unlikely to end soon. Trump threatened to expand strikes to target Iran’s Kharg Island oil hub, emphasizing that Washington is restricting Tehran’s ability to threaten commercial shipping through Hormuz. He also called on other nations to help secure the passage. Treasury Secretary Scott Bessent confirmed that the U.S. is allowing Iranian crude to continue transiting the waterway. Meanwhile, Gulf nations are adjusting their oil output. The UAE and Kuwait have cut production, while Saudi Arabia and the UAE are increasing exports via alternative routes that bypass the Strait of Hormuz. JPMorgan Chase analysts, including Natasha Kaneva, warned that Iran may make passage through Hormuz conditional, allowing certain vessels while restricting others depending on political ties. Data shows the number of Iranian ships using the strait reached a wartime high on Monday, including a tanker heading to China. Chris Weston, head of research at Pepperstone Group, highlighted the market risk: “The biggest concern is the Strait of Hormuz remaining constrained for an extended period, with the U.S. and its allies having limited ability to change the dynamic.” Trump also said he requested China to delay a summit with President Xi Jinping by about a month to remain in Washington and oversee the situation. As the conflict continues, traders and governments alike are monitoring supply disruptions closely, with oil markets reacting to every development in the Persian Gulf.