Meanwhile, Trump replaces Hormuz levy proposal with incoming investment opportunities from Gulf states: File Image/Pixabay 

A third night of U.S. military strikes against Iran caused oil to climb 
as much as 4.6 percent on Tuesday before eventually dropping to about 2 percent after U.S. president Donald Trump stated he would abandon his earlier proposal for Washington to charge a 20 percent fee for the safe passage of ships through the Strait of Hormuz.

Trump said he would replace the fees with “Trade and investment deals that the various Gulf states will be making into the United States” – a statement that caused analysts to ponder which countries had agreed to invest in exchange for safe passage.

Brent settled up $1.43, or 1.7 percent, at $84.73 per barrel, while West Texas Intermediate settled up $1.20, or 1.5 percent, at $79.34; the increase for Brent kept the benchmark in technically overbought territory for a second consecutive day for the first time since March.

Also on Tuesday, Qatar strongly condemned repeated Iranian attacks on Jordan, Bahrain, and Kuwait – but instead of calling for countermeasures it advocated for “maintaining the path of dialogue, diplomacy and de-escalation.”

Iran on Tuesday was blamed by Oman for targeting three Liberian-flagged oil tankers in separate incidents off the Oman coast, causing varying injuries to six people and evacuation of crews to nearby vessels.

Meanwhile, Kuwait intercepted “hostile” projectiles over its airspace but did not disclose more details.

Capping all of this was Iran’s Revolutionary Guard Corps, which on Tuesday threatened that “not a single drop of oil and gas” will be exported from the region as long as U.S. “evil actions” continued.

In other oil news, media reported that Azerbaijan was pursuing new transport and trade agreements with Turkmenistan, Uzbekistan, and Kazakhstan to expand Middle Corridor trade with Central Asian states.

Also, Odesa authorities revealed that a Russian drone strike on a commercial vessel in Ukraine's Odesa region killed five seafarers and injured 12 others; Russian drone and missile strikes have rained on Odesa ports over a three-day period, killing port workers, drivers and sailors and reportedly contributing to the surge in oil prices before end of session Tuesday.