Online Desk : Oil prices rose sharply on Tuesday after former US President Donald Trump urged the evacuation of Tehran, intensifying fears of an all-out war as Israel and Iran continued to exchange missile fire for a fifth straight day.

Trump`s social media warning, in which he stated, “Everyone should immediately evacuate Tehran!”, triggered a renewed rally in crude markets. He also reiterated his long-held stance against Iran developing nuclear weapons, writing, “Iran should have signed the ‘deal’ I told them to sign... IRAN CAN NOT HAVE A NUCLEAR WEAPON.”

Following a brief dip on Monday, when markets hoped the conflict would remain contained and avoid hitting critical oil infrastructure, prices jumped again. West Texas Intermediate climbed 1.6 percent to 72.94 dollars per barrel, while Brent crude rose 1.4 percent to 74.25 dollars.

While tensions surged, there were also cautious signs of potential diplomatic movement. According to reports, Iran signalled a willingness to resume nuclear talks, though Israeli Prime Minister Benjamin Netanyahu declared the country’s offensive was “changing the face of the Middle East.”

Despite Trump’s insistence that the US is not involved in the Israeli campaign, Iran’s foreign minister suggested the former president could halt the attacks “with one phone call.” The US Navy’s decision to send the USS Nimitz out of Southeast Asia and redeploy “additional capabilities” to the Middle East added to concerns over a possible escalation.

Meanwhile, risk assets edged higher in Asia, buoyed by signs that the conflict may remain geographically limited for now. Tokyo, Sydney, Seoul, Singapore, and Taipei markets posted gains, though Hong Kong and Shanghai lagged behind.

Rodrigo Catril of National Australia Bank said, “Risk assets are enjoying a positive start to the new week amid signs the Israel-Iran war remains limited to the two countries... Iran is reportedly seeking de-escalation talks, but Israel is not showing signs of slowing down.”

Investors were also monitoring the G7 summit in Canada, where Trump departed early to return to Washington, citing the escalating Middle East situation. Before leaving, he hinted at a possible breakthrough with Iran, saying, “As soon as I leave here, we`re going to be doing something.”

World leaders at the summit criticized Trump’s trade policy, warning it could threaten global economic stability. Elsewhere, markets are awaiting key central bank decisions, including a Bank of Japan rate announcement expected later in the day.

Key figures around 02:30 GMT

West Texas Intermediate: up 1.6 percent at 72.94 dollars per barrel
Brent North Sea Crude: up 1.4 percent at 74.25 dollars per barrel
Tokyo - Nikkei 225: up 0.5 percent at 38,501.08 (break)
Hong Kong - Hang Seng Index: down 0.1 percent at 24,038.68
Shanghai - Composite: down 0.1 percent at 3,385.61
Euro/dollar: down to 1.1552 dollars from 1.1562
Pounddollar: down to 1.3569 dollars from 1.3579
Dollar/yen: up to 144.92 yen from 144.79
Euro/pound: up to 85.14 pence from 85.12
New York - Dow: up 0.8 percent at 42,515.09 (close)
London - FTSE 100: up 0.3 percent at 8,875.22 (close)