Global crude oil prices declined sharply on Tuesday, falling up to 2 per cent despite a fresh escalation in West Asia, as the conflict entered its third month. 

The international oil benchmark Brent crude slipped 1.36 per cent to $112.88 per barrel, while US West Texas Intermediate (WTI) fell 2.34 per cent to $103.92 per barrel.

On the domestic front, crude oil futures (June 18) on the Multi Commodity Exchange traded lower, down 1.12 per cent or Rs 109 at Rs 9,578.

Prices eased after a sharp rally in the previous session, even as geopolitical tensions between the US and Iran persisted. The global oil benchmark had risen overnight to nearly $114 per barrel.

Meanwhile, the rupee opened 22 paise lower, hovering near record lows.

The Indian currency was trading at 95.31 against the dollar after closing at a record low of 95.09 in the previous session.

Iran reportedly launched attacks in the Gulf in response to US moves, as both sides vie for control over the Strait of Hormuz, a key route connecting the Gulf to global markets and carrying nearly 20 per cent of the world’s daily oil and gas supply.

Both sides carried out attacks in the Gulf, turning the Strait of Hormuz into a flashpoint and raising fears that the fragile ceasefire could collapse.

A market expert said the resumption of hostilities in the Hormuz region and Brent crude rising again to around $113 are headwinds for the market.

The latest missile and drone attacks came after US President Donald Trump moved to escort stranded tankers and cargo ships through the Strait, that has been largely blocked since the US and Israel launched their campaign against Iran in February.