In an aerial view, the Marathon Petroleum Corp's Los Angeles Refinery is seen on April 2, 2026 in Carson, California.

Oil prices declined after closing sharply higher on Monday, as traders continue to assess the risk of immediate supply disruptions amid renewed tensions between the United States and Iran.

Futures for international benchmark Brent crude for July delivery slid 1.26% to $113 per barrel Tuesday, while U.S. West Texas Intermediate futures lost 2.12% to $104.16 per barrel. Brent and WTI settled 6% and 4% higher, respectively on Monday.

A fragile ceasefire between the United States and Iran appeared close to unraveling on Monday after the United Arab Emirates was hit by Iranian drones and missiles, while Washington said it had sunk Iranian vessels in the Strait of Hormuz.

Speaking to Fox News, U.S. President Donald Trump warned that Iran would be "blown off the face of the earth" if it targeted U.S. ships safeguarding commercial traffic through the strait.

In a separate post on Truth Social, Trump said a South Korean cargo vessel had come under fire in the waterway, adding: "Perhaps it's time for South Korea to come and join the mission!"