Oil prices retreated Tuesday after Monday’s surge sparked by fresh attacks in the Middle East. Iran attacks struck the United Arab Emirates and fired at U.S.-guided vessels in the Strait of Hormuz, a chokepoint that moves roughly one‑fifth of global oil. Asian markets opened flat, Hong Kong’s Hang Seng down 1 % on energy costs.

Brent crude slipped about 1 % to $113 a barrel, while West Texas Intermediate fell 2 % to $104. The pullback erased much of Monday’s gains but left both benchmarks well above levels seen earlier in the year. Analysts warn that any further escalation could push benchmarks toward $120. Investors remain focused on shipping disruptions, and Washington is urging China to pressure Tehran to reopen the strait.

Gasoline prices jumped to a national average of $4.46 per gallon, a 50 % increase since the conflict began, while diesel hit $5.64, also up half again. The surge also inflates logistics costs, squeezing margins for trucking firms. Higher pump prices add cost pressure for consumers and could dampen demand for travel and freight.