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.
With the US administration pledging to do "whatever it takes" to meet the campaign's objectives, traders remain on high alert for further retaliatory strikes.
The market's primary focus remains on the potential for a total closure of the Strait of Hormuz, which would remove a vital artery of global energy trade from the map.