Oil prices surged more than five percent Tuesday as several countries pushed back against Donald Trump’s demand that they help secure the key Strait of Hormuz, while Iran continued to target crude-producing neighbours.

They recovered the previous day’s sharp losses that came after the head of the International Energy Agency (IEA) said more stockpiles could be tapped if needed.

Still, most equities extended Monday’s gains as tech firms rallied after Nvidia said it expected to make at least $1 trillion in revenue through the end of 2027.

Investors are also awaiting a slew of central bank decisions this week that analysts say could see a resumption of interest rate hikes aimed at offsetting a possible spike in inflation caused by the surge in crude prices.

Australia said Tuesday it had lifted borrowing costs because of “sharply higher fuel prices”.

Trump has called for allies in Europe and elsewhere to help reopen the Strait of Hormuz, which Iran has effectively closed, saying at the weekend that securing the waterway “should have always been a team effort, and now it will be”.

But on Monday there was only a lukewarm response, with German Chancellor Friedrich Merz saying the war started by US-Israeli strikes on Iran was “not a matter for NATO”, while Britain, Spain, Poland, Greece and Sweden all distanced themselves from the calls.

Australia and Japan also opted not to join.

The US president told The Financial Times on Sunday that it would be “very bad for the future of NATO” if the allies refused to help, and said Monday that he had asked to delay a summit with Chinese leader Xi Jinping by a “month or so” over the issue.

With the crisis showing no sign of ending soon, both main crude contracts spiked. West Texas Intermediate and Brent each climbed more than five percent above $100 a barrel before easing back slightly.

They had dropped Monday after IEA boss Fatih Birol flagged that member countries could unlock more oil from strategic stocks “if needed”, after already agreeing last week to a record release of 400 million barrels.

Low conviction

Traders were also cheered by news from monitor Marine Traffic that a Pakistani oil tanker became the first non-Iranian tanker to transit Hormuz with its automatic transponder system activated.

But attacks on Middle Eastern oil facilities continued. Qatar said it had intercepted missiles, though explosions were heard in Doha on Tuesday, while an “unknown projectile” hit a tanker off the coast of Oman.

Meanwhile, Israel said it had launched a “wide-scale wave of strikes” in Tehran as well as attacks on Hezbollah in the Lebanese capital Beirut.

Drones struck major oil fields in the United Arab Emirates and Iraq on Monday.

And a drone and rocket attack targeted the US embassy in Baghdad early Tuesday, a security official said.

Equities continued to defy the spike in crude, with markets across Asia rising, helped by the remarks from Nvidia, which allowed investors some relief from events in the Middle East.

Seoul, which had rocketed around 50 percent between the start of the year and the start of the war, led gains by rising more than one percent. Taipei, where chip titan TSMC is listed, was up a similar amount.

Hong Kong, Sydney, Singapore, Taipei, Mumbai, Bangkok, Jakarta and Manila were also well up, though Tokyo and Shanghai dipped.

London rose at the open but Paris and Frankfurt fell.

That came after all three main indexes on Wall Street ended comfortably higher.

However, Pepperstone’s Chris Weston said: “Conviction behind a sustained rally in risk assets remains relatively low, although it is important to stay open-minded to the possibility that momentum could build.”

While the IEA comments and news of the tanker were welcomed, he warned that “it is difficult to view these developments as a definitive de-escalation or a true circuit breaker for the energy risk premium”.

Key figures at around 0815 GMT

West Texas Intermediate: UP 3.9 percent at $97.11 per barrel

Brent North Sea Crude: UP 3.3 percent at $103.47 per barrel

Tokyo – Nikkei 225: DOWN 0.1 percent at 53,700.39 (close)

Hong Kong – Hang Seng Index: UP 0.1 percent at 25,868.54 (close)

Shanghai – Composite: DOWN 0.9 percent at 4,049.91 (close)

London – FTSE 100: UP 0.2 percent at 10,335.91

Euro/dollar: DOWN at $1.1500 from $1.1510 on Monday

Pound/dollar: DOWN at $1.3301 from $1.3327

Dollar/yen: UP at 159.19 yen from 159.14 yen

Euro/pound: UP at 86.40 pence from 86.36 pence

New York – Dow: UP 0.8 percent at 46,946.41 (close)