Brent crude prices surged by 4% following reports of renewed shipping disruptions in the Red Sea.
Tankers are now rerouting around the Cape of Good Hope, adding to existing concerns about supply chain stability in the region.
The price increase reflects the market's response to the added shipping costs and delays associated with the detours.
The move highlights the ongoing sensitivity of energy markets to geopolitical and logistical risks.
The price increase reflects the market's response to the added shipping costs and delays associated with the detours.
Energy traders are, as any prolonged rerouting could further strain global oil flows and potentially lead to higher prices.
The development comes amid a backdrop of already tight energy markets, where supply constraints and geopolitical tensions have kept volatility elevated.