Oil prices werme volatile on Wednesday following U.S. military strikes on Iranian targets, heightening fears that escalating tensions could disrupt shipping through the Strait of Hormuz.

U.S. crude futures for July delivery held steady at $88.19 per barrel as of 4:47 a.m. ET, trimming earlier gains of more than 1 per cent.

Brent crude for August delivery edged up 0.14 per cent to $91.58 per barrel.

The U.S. military confirmed it had carried out strikes on Iranian military positions near the strategic Strait of Hormuz.

U.S. forces launched strikes on Iran on Tuesday night following the downing of an American Army Apache helicopter a day earlier, according to U.S. Central Command. CENTCOM described the operation as a “defensive and measured” response to what it called Iranian aggression.

President Donald Trump said earlier on Tuesday that Iran had shot down a U.S. helicopter carrying out patrols near the Strait of Hormuz, warning that the United States would retaliate.

“The two pilots involved in the attack are safe and uninjured,” Trump wrote on Truth Social. “Nevertheless, the United States must, of necessity, respond to this attack.”