US crude prices fell more than 1% on Tuesday, with West Texas Intermediate dropping $1.54, or 1.5%, to $104.88 a barrel. Traders are weighing the impact of Iranian attacks on vessels in the Strait of Hormuz against news that a US-flagged ship operated by Maersk's Farrell Lines unit transited the strait under US military escort.
The transit eased some immediate fears of a supply disruption. US Central Command said American forces are actively assisting efforts to restore commercial shipping through the strait.
Oil prices had surged over 6% on Monday after President Trump launched a new operation to reopen the waterway, prompting Iranian retaliation. Several commercial vessels were reportedly struck, and a UAE oil port was set ablaze in the conflict's biggest escalation since a ceasefire took effect four weeks ago.