Oil rose more than 2% to $102.69 a barrel as markets weighed the risk of an Iran war supply.

Oil prices rose more than 2% in early trade on Tuesday, reversing some of the previous session’s losses, as concerns over supplies along the Strait of Hormuz and US allies rejected calls to send warships to help move tankers through the vital waterway.

Brent futures rose $2.48, or 2.5%, to $102.69 a barrel by ⁠0058 GMT, while U.S. West Texas Intermediate crude rose $2.42, or 2.6%, to $95.92.

In the previous session, Brent futures settled 2.8% lower while US West Texas Intermediate (WTI) crude fell 5.3% as some ships passed through the troubled waterway.

The Strait of Hormuz – a chokepoint for about 20% of the world’s oil and liquefied natural gas trade – has been largely disrupted by the US-Israeli war over Iran, now in its third week, raising concerns about supply shortages, energy costs and rising inflation.

Some US allies rejected Donald Trump’s call on Monday to send warships to escort shipping through the Strait of Hormuz, criticizing the US president, who accused Western partners of ingratitude after decades of support.

“The risks remain stark: All it takes is one Iranian militia firing a missile or planting a mine on a passing tanker to reignite the entire situation,” IG Markets analyst Tony Sycamore said in a note.

Iran has asked India to release three tankers seized in February as part of a search for safe passage for Indian-flagged or India-bound ships through the Strait of Hormuz, three sources with knowledge of the matter told Reuters.

The effective closure of the strait has forced the United Arab Emirates, the third-largest producer of the Organization of the Petroleum Exporting Countries, to cut production, cutting its output by more than half, two sources told Reuters.

To curb rising energy costs, the head of the International Energy Agency suggested that member countries could release more oil, in addition to the 400 million barrels they have already agreed to draw from strategic reserves.

Some banks have raised their long-term price estimates, potentially reflecting prolonged supply disruptions. Bank of America raised its 2026 Brent forecast by $61 to $77.50 a barrel, while Standard Chartered raised its estimate by $70 to $85.50.

BofA said in a note that its updated view reflects two equally likely paths: a quick resolution that restores flows by April and puts Brent near $70, or a longer disruption in the second quarter that pushes prices toward $85.

Israel said it had detailed plans for at least three weeks of war as its military attacked sites across Iran overnight.