Brent crude and US stock futures moved higher on Sunday as the United States and Iran exchanged further airstrikes, deepening the ongoing military confrontation in the Middle East.
The escalation marks a continuation of the conflict that has already triggered significant volatility in global energy markets.
Energy prices responded to the renewed hostilities, with traders repricing the risk of supply disruptions from the region.
The market reaction underscores the persistent premium investors are attaching to geopolitical instability, particularly regarding potential impacts on Iranian oil exports and regional shipping routes.
Equity markets showed a more muted response, with futures ticking up slightly.
This divergence suggests that while investors are wary of the immediate supply shock to energy, they are not yet pricing in a broader economic downturn or a complete breakdown of global trade flows.