Crude oil prices have surged back on Tuesday after declining following the US and Iran agreement to resolve issues through the implementation of the peace deal.
The prices surged amid concerns over the restoration of full oil supplies and energy flow through the Strait of Hormuz.
Brent crude futures gained 26 cents, or 0.3 per cent, to hit $83.42 a barrel, while US West Texas Intermediate (WTI) rose by 46 cents, or 0.3 per cent, to reach $81.12 a barrel.
Prices had dropped to $83 per barrel during early trading hours after US President Donald Trump said a memorandum of understanding for peace between Iran and the United States was likely to be signed on Friday.
Although the announcement triggered a sharp rally in stock markets across the world, investor sentiment remains largely dependent on the outcome of the US-Iran peace deal.
Fears of disruption remain high since Israeli forces have continued their air and ground assaults on Lebanese territory, especially in the northern and southern parts of the country.
However, Iran has categorically stated that the peace deal includes a ceasefire and the withdrawal of Israeli forces from occupied territory.
Since the escalation between Israel and Iran on February 28, estimates suggest that Israel has captured nearly one-fifth of southern Lebanon.
Repeated attacks have caused uncertainty in the Strait of Hormuz, triggering fluctuations in oil supply across Asian economies.
Also read: WPI inflation hits record high of 9.68 pc
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