Oil prices rose on Tuesday, driven by escalating geopolitical risks and a decline in U.S. stockpiles. Despite expectations for a broader market decline, analysts suggest the downward trajectory will be gradual as the resolution of the U.S.-Iran conflict remains unpredictable. OCBC highlighted that ongoing tensions are supporting price stability, offsetting concerns over demand.

The market continues to navigate a complex balance between supply disruptions and global economic forecasts. Traders are closely monitoring developments in the Middle East for further direction. The gradual decline path reflects a market adjusting to new risk premiums rather than fundamental demand shifts.

With stockpiles shrinking, the supply cushion has narrowed, providing additional support to current valuations. The situation underscores the volatility inherent in energy markets when political uncertainty intersects with physical supply metrics.