Brent crude futures surged approximately 2% on Monday, breaking through the $73 per barrel threshold as markets reacted to renewed military strikes between the United States and Iran.
The sharp repricing underscores the fragility of the current geopolitical truce, with investors quickly pricing in the risk of renewed combat operations in the Middle East.
6%, to $72.44 a barrel in earlier trading, reflecting growing concerns over the lack of an immediate resolution to the conflict.
The market move comes despite both nations signing a memorandum of understanding earlier this month, a deal intended to pave the way for final negotiations.
The immediate breakdown of that diplomatic progress has triggered a risk premium in energy markets, as traders assess the potential for sustained disruption to regional shipping lanes and oil exports.
Brent crude had previously climbed 45 cents, or 0.6%, to $72.44 a barrel in earlier trading, reflecting growing concerns over the lack of an immediate resolution to the conflict.
The fresh escalation has now accelerated that upward momentum, with the benchmark contract pushing well above the $73 level as selling pressure on equities and buying interest in safe-haven commodities intensified.