Oil prices hovered near $114 a barrel on Tuesday as global markets reacted to escalating attacks in the Persian Gulf, gasoline prices surged past $4 a gallon nationally, and stocks fluctuated sharply across continents.

The conflict intensified after Iran rejected President Trump's demands regarding its blockade of the Strait of Hormuz, a vital oil transit route. A Kuwaiti tanker was attacked near Dubai, highlighting the region's fragility. Gasoline prices jumped 35% since the war began, while diesel costs rose even faster to $5.42 a gallon. These spikes reflect the market's anxiety over supply disruptions.

U.S. and European stocks rose on Tuesday, though Asian markets plummeted as economies heavily reliant on Middle East energy imports, like Japan and South Korea, sold off heavily. The persistent uncertainty over the Strait of Hormuz continues to weigh on investor sentiment globally.