Global oil prices held steady on March 3 as energy markets braced for an intensification of conflict in the Middle East.
West Texas Intermediate hovered near US$71 a barrel following a 6% rise, while Brent crude traded near US$78.
The price stability comes amid reports that the US is preparing to escalate strikes against Iranian missile and drone production facilities.
The geopolitical tension reached a flashpoint as Ebrahim Jabbari, an adviser to Iran’s Revolutionary Guard, threatened to "set fire" to any vessel attempting to transit the Strait of Hormuz.
The critical waterway handles approximately one-fifth of the world’s oil and liquefied natural gas supply.
Tanker traffic has already ground to a virtual halt due to the heightened security risks, sparking fears of a global inflationary wave.
Saudi Aramco was forced to suspend operations at its Ras Tanura refinery following a drone strike, while Qatar halted production at the world’s largest LNG export facility after an Iranian attack.
ANZ analysts have warned that the conflict is entering a "dangerous phase," noting that a prolonged disruption to regional exports will have a compounding impact on global energy security.