Oil staged a big rally on Tuesday, rising after slumping the earlier day as investors were grasping the ongoing supply turbulent across the Red Sea.

WTI advanced by 2.7% at $72.67 per barrel meanwhile brent crude added 2.4% to $77.98 per barrel.

Prices are still supported by the prospect that the war between Israel and Hamas would drag on for long time, raising concerns that it may escalate into a regional crisis that might sabotage supply from this oil-rich area.

The Red Sea continues to be avoided by a list of significant shipping companies, causing the surge of the price of the exporting crude.

Due to severe reduction by leading exporter Saudi Arabia to its selling prices, the oil market fell almost 3% on Monday, sparking fears about demand, particularly from the vital Asian market.

OPEC and its allies announced more output restrictions for 2024 which disappointed markets, almost a month prior to the trims to Saudi OSPs.