Oil prices exhibited volatility on Wednesday following a US military strike against Iran, which came after an attack on an Apache helicopter.

Market concerns are centered on the potential for renewed hostilities to threaten shipping security through the Strait of Hormuz.

Crude oil futures for July delivery in the US declined by 0.19% to $88.03 per barrel, erasing earlier gains of over 1%.

The international benchmark Brent crude for August delivery fell 0.2% to $91.27 per barrel.

The US military stated that it has completed strikes against Iranian military targets near the Strait of Hormuz.

According to the US Central Command, the strikes were carried out overnight on Tuesday in response to an incident where a US Apache helicopter was downed the previous day.

The Central Command described the action as a defensive and proportionate response to what it termed Iran's "provocative actions."

Earlier on Tuesday, the US President indicated that Iran had shot down a US helicopter conducting patrols near the Strait of Hormuz and suggested that a US response would follow.

In a post on social media, the President stated that the two pilots from the attacked helicopter were safe.

He added, however, that the US must deliver a necessary response to the attack.

Energy consultancy Rystad Energy highlighted that the shutdown of 11.8 million barrels per day of capacity from six Gulf nations represents the most severe oil supply disruption in modern history.

The firm estimates that cumulative production losses have already reached 1 billion barrels.

It further warned that each month the conflict persists could result in an additional 350 million barrels of lost production.