Crude oil prices climbed on Monday following statements from US President Donald Trump threatening renewed military action against Iran.
The remarks cast doubt on the durability of a fragile interim peace agreement reached between the two nations last week, reigniting fears of a broader regional conflict.
Brent crude and WTI futures both advanced in early trading as traders repriced the risk of supply disruptions.
The market reaction underscores the sensitivity of energy markets to geopolitical developments in the Middle East, particularly regarding the Strait of Hormuz, through which a significant portion of global oil shipments pass.
The threat of fresh strikes comes amid ongoing tensions between Washington and Tehran.
President Trump indicated that the ceasefire remains precarious, following the rejection of Tehran's counterproposal to end the war.