Energy markets experienced heightened volatility for a second day as investors scrambled to decipher rapidly changing statements from US officials regarding the conflict with Iran.

Oil prices dropped sharply after Energy Secretary Chris Wright mistakenly posted and later removed a social media message claiming the US Navy had escorted a tanker through the Strait of Hormuz. White House Press Secretary Karoline Leavitt later clarified that no such operation had taken place, but stated the US military was developing additional strategies to counter any Iranian efforts to restrict traffic through the critical waterway.

On Tuesday afternoon, President Donald Trump posted a series of social media updates. He initially stated the US had "no reports" of mines being deployed, then called on Iranian forces to remove any explosives they might have placed. Subsequently, he announced the US was utilizing "the same Technology and Missile capabilities deployed against Drug Traffickers" to target minelaying vessels.

Minutes later, the president reported US forces had "hit, and completely destroyed, 10 inactive mine laying boats" and indicated further actions would follow.

The erroneous post by Wright and Trump's rapid-fire updates highlighted the inconsistent messaging that has concerned observers in Washington and financial markets. Oil prices initially fell nearly 20% following the energy secretary's post before partially recovering as more information became available.

The conflict has expanded across the Middle East, pushing regional energy producers toward a crisis. Global retail gasoline and diesel prices have surged, creating political challenges in the US during an election year and prompting some Asian governments to implement fuel consumption restrictions.

The vital Strait of Hormuz remains effectively closed to nearly all maritime traffic. Saudi Arabia, Iraq, the United Arab Emirates and Kuwait have significantly reduced oil production. There are few indications the strait can reopen quickly without at least a temporary cessation of hostilities.

Saudi Aramco CEO Amin Nasser described the situation as "the biggest crisis the region's oil and gas industry has faced."

US officials indicated on Tuesday that military operations against Iran were intensifying and diplomatic negotiations appeared unlikely, contradicting Trump's previous suggestion of a near-term resolution. Leavitt confirmed the US was taking steps to dismantle Iran's missile production facilities.

"The fundamental question remains whether Iran genuinely seeks a diplomatic solution," stated Special Envoy Steve Witkoff in a CNBC interview. "Current evidence suggests they do not."

The Pentagon reinforced this position, noting the US and Israel had conducted their most extensive attacks against Iran to date.

"Our operations will continue until the enemy is decisively defeated," Defense Secretary Pete Hegseth stated at a press briefing. "We will proceed according to our own timeline and strategic decisions."

Iran continued offensive operations, launching drones and missiles at various targets across the Middle East.

The largest refinery at Ruwais in the UAE suspended operations following a drone strike that ignited a fire in its industrial complex, according to informed sources. Abu Dhabi National Oil Co. was evaluating damage at the facility.

Early week indications suggested Iranian attacks on some nations, including the UAE, were diminishing. Persian Gulf airlines gradually resumed flights despite ongoing missile and drone interceptions by regional defenses.

Nevertheless, the UAE reported overnight ballistic missile launches from Iran, while Saudi Arabia and Kuwait confirmed intercepting Iranian drones. Air raid sirens were activated in Bahrain.

Iranian President Masoud Pezeshkian expressed Tehran's willingness to de-escalate conflicts provided neighboring countries' "airspace, territory, and waters" aren't used to launch attacks against Iran, according to the semi-official Mehr news agency.

Pezeshkian's comments followed Monday's interception of an Iranian missile in Turkish airspace by NATO defenses. NATO is enhancing air defenses in southeastern Turkey, where the US operates critical radar systems supporting the alliance's missile shield.

Australia, South Korea and the United Kingdom have contributed to strengthening Gulf allies' defenses or are considering requests for assistance.

Official reports indicate over 1,300 Iranian casualties, though this figure hasn't been updated recently. At least seven US service members have died, with Leavitt confirming approximately 150 injuries. Two Israeli soldiers and about a dozen civilians have been killed, with additional fatalities reported in Gulf nations.

Israeli forces continued strikes in southern Lebanon on Tuesday targeting Iran-aligned Hezbollah. Lebanon's health ministry reports approximately 486 fatalities in the country.

According to an Axios report citing three informed sources, the US and Israel disagree regarding Israeli attacks on Iranian energy infrastructure. US Senator Lindsey Graham recently advised Israel to exercise caution in target selection to avoid permanently damaging Iran's future capabilities.