Crude oil prices recovered from a 5% drop in the previous session as reports indicated that some ships had successfully transited the Strait of Hormuz. However, the shipping route remains largely blocked, and US calls for allies to help patrol the strait have been largely rejected. Brent crude futures rose 2.1% to $102.28 per barrel by 12:33 a.m. (12:33 a.m. Moscow time), while West Texas Intermediate crude futures rose 2.2% to $94.50 per barrel.

Hostile tensions between the United States, Israel, and Iran showed no signs of abating on Tuesday, as the conflict entered its third consecutive week. Iran threatened to strike U.S.-linked industries in the Middle East after the United States and Israel attacked Kharg Island, a key export terminal for the Islamic Republic, last week.

US President Donald Trump over the weekend called on at least seven countries, including China, to help resume trade through the Strait of Hormuz. But his calls were largely rejected, with several US allies indicating they had no immediate plans to send ships to the Middle East. The strait's closure has become a major focus of the war, given that it carries approximately 20% of global oil supplies. Iran effectively blocked the strait earlier this month.

However, reports on Monday indicated that some gas tankers flying the flags of India and Pakistan successfully transited the strait. Iran had previously signaled that it would allow ships from certain countries to transit the strait and would attack any vessels linked to the US and its allies.

The inflationary impact of the war with Iran has become a major pain point for markets amid fears that energy-driven inflation will lead to more stringent measures from global central banks.

Several major central banks, including the Federal Reserve, the European Central Bank, and the Bank of Japan, will hold meetings this week.