Oil prices surged on Friday following an exchange of fire between U.S. and Iranian forces in the Strait of Hormuz, a vital global shipping route.

The incident has intensified fears that the tenuous ceasefire between the two nations is deteriorating, potentially leading to further disruptions in maritime trade.

8% in the session, reflecting heightened concerns over the security of energy flows through the region.

Brent crude climbed 3.8% in the session, reflecting heightened concerns over the security of energy flows through the region.

The Strait of Hormuz, which handles nearly 20% of the world's oil shipments, has been a focal point of geopolitical tensions for months, with recent developments adding to the uncertainty.

The escalation comes amid a broader backdrop of rising regional tensions and a lack of immediate diplomatic resolution.

The incident marks a sharp deterioration in the fragile ceasefire, with both sides accusing the other of initiating the attack.