Brent crude futures surged more than 2% to $73.17 a barrel on Monday, while US West Texas Intermediate (WTI) rose to $70.92, as renewed military strikes between the United States and Iran cast doubt on the stability of their interim peace agreement.
The price spike reflects immediate market anxiety over potential supply disruptions in the Middle East.
Traders are repricing the risk that the ongoing conflict could escalate beyond the current scope, potentially impacting oil infrastructure or shipping routes in the region.
The move underscores how quickly geopolitical sentiment can shift commodity valuations when diplomatic frameworks appear fragile.
This development follows a weekend of heightened tensions, with reports indicating that fresh US military options on Iran have raised the specter of renewed combat.
The escalation marks a significant deterioration in the security environment, reversing some of the calm that had allowed oil prices to stabilize in recent sessions.