- Oil plunges, for now -

Oil prices sank following a volatile day as Iran insisted it was not seeking a ceasefire and US President Donald Trump upped his threats surrounding the strategic Strait of Hormuz.

The international oil benchmark, Brent North Sea crude, plunged 11.3 percent to $87.80 a barrel, a day after it neared $120.

- European bank chief vows to control inflation -

European Central Bank chief Christine Lagarde said that "everything necessary" will be done to keep inflation in check during the war.

"We will do everything necessary to keep inflation under control and ensure that the French and the Europeans do not experience inflation increases like those we saw in 2022 and 2023" partly caused by Russia's invasion of Ukraine, Lagarde told French broadcasters.

- Hormuz confusion -

The United States energy secretary said in a video on X that the US Navy had escorted an oil tanker through the Strait of Hormuz -- but the post was deleted within minutes.

The White House subsequently stated that the US Navy had not escorted any tankers through the strategic Gulf passage.

Iran's Revolutionary Guards said no US Navy vessel has "dared" approach the strait, which they virtually closed in retaliation of the US-Israeli strikes that killed their supreme leader.

Trump warned Iran to not place mines in the strait.

- Stocks recover -

The Paris and London stock markets gained over 1.5 percent after European gas prices sank 15 percent, helping ease concerns over a renewed surge of global inflation. Frankfurt ended the day up 2.4 percent.

Asian stock markets rallied, with Seoul up more than five percent and Tokyo ending with a gain of 2.9 percent, but US stocks, which were in positive territory for much of Tuesday, finished mostly lower.

- Strategic reserves -

Member states of the International Energy Agency met for crisis talks to assess security of supply and the potential release of emergency stocks as the Middle East war roils markets.

In a statement following a Paris meeting of G7 energy ministers, the IEA chief said the talks addressed "all the available options, including making IEA emergency oil stocks available to the market."

- UAE refinery -

The region's biggest single-site oil refinery, at Ruwais in the United Arab Emirates, was closed as a precaution after a drone attack on the industrial complex that houses it caused a fire, a source familiar with the situation told AFP.

A driver working at the complex, who requested not to be named, told AFP they saw "bursts of fire rising from the complex, with loud sounds like explosions."

- Egypt hikes fuel prices -

Egypt raised domestic fuel prices by up to 30 percent, blaming "exceptional" global energy pressures caused by the war, which has disrupted oil supplies and shipping routes.

The increases, announced by the petroleum ministry, apply to gasoline, diesel and natural gas used in vehicles.

- India tightens gas controls -

India ordered tighter controls over natural and cooking gas following import disruptions, with restaurants warning the war could spark widespread closures.

The world's most populous nation is the fourth largest liquefied natural gas buyer and second-largest buyer of liquefied petroleum gas used for cooking -- much of which is sourced from the Middle East.

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