Oil prices rose on Tuesday as Israel and Iran continued to strike each other, raising concerns over oil supply from the Middle East. On Monday, U.S. President Donald Trump cut short his visit to Canada for the Group of Seven summit after urging people in Tehran to evacuate.

Global markets have remained relatively calm amid the escalating tensions between Israel and Iran. But that sentiment could quickly shift, according to experts, if the conflict affects the Strait of Hormuz.

There are reports that a few shipping lines may be reassessing routes, particularly the choke point of the Strait of Hormuz, given the heightened threat in the region. This could further add to the transportation cost to and from the region.

Tensions at the Strait of Hormuz risk 20M bpd in crude oil flow, fueling a sharp rally in oil futures and boosting market volatility.

Oil prices were stable on Monday after Iran's oil production infrastructure was excluded from intensification of military conflict with Israel, while the Strait of Hormuz remains open

About 21mn barrels of oil from Iran, Iraq, Kuwait, Saudi Arabia, Qatar and the United Arab Emirates pass daily through the narrow waterway separating the Islamic republic from the Gulf states, representing about one-third of the world’s seaborne oil supplies.

Global oil prices are surging in anticipation of a supply shock due to the escalating conflict around the Strait of Hormuz, according to Petroliam Nasional Bhd (Petronas). At the time of writing, the Brent crude oil price rose 0.97 percent to US$74.95 per barrel.

US stocks closed higher as Iran aims to deescalate the clash with Israel. Oil prices eased. Fed meets on rates this week. No one expects a rate cut.