Oil prices jumped and stocks mostly fell Tuesday after President Donald Trump abruptly departed G7 talks and concerns rose over a possible US intervention in the Israel-Iran war.

Oil prices initially rose after Iran's supreme leader Ali Khamenei rejected US President Donald Trump's demand for an "unconditional surrender", adding to sharp gains made the previous day. Six days into the conflict, Khamenei warned the United States would face "irreparable damage" if it intervenes in support of Israel.

The greatest risk the oil markets face is that Iran retaliates against Israel airstrikes by closing the Strait of Hormuz, which is critical to global energy shipments.