Iran has intensified its control over the Strait of Hormuz, triggering a sharp rise in crude oil prices as traders reassess the risk of supply disruptions.
The development marks a significant escalation in tensions at the world’s most vital energy chokepoint, where roughly a fifth of global oil consumption passes daily.
Brent crude climbed sharply in the session, reversing earlier gains that had seen prices slide toward pre-war lows.
The repricing reflects renewed anxiety among energy traders regarding the security of maritime routes through the Persian Gulf.
With shipping insurance premiums likely to rise and vessel routing becoming more complex, the immediate impact is a spike in the geopolitical risk premium embedded in energy contracts.
The escalation follows confirmation from U.S. Secretary of State Marco Rubio on Tuesday that Iran has deployed mines in "large segments" of the Strait.