The United States has resumed military strikes on Iran, marking a decisive end to diplomatic efforts after Washington accused Tehran of deliberately stalling peace negotiations.
The escalation from talks to kinetic action removes the primary buffer against regional conflict, forcing markets to rapidly reprice geopolitical risk.
Oil benchmarks and shipping insurance premiums are spiking as traders price in the likelihood of prolonged instability.
The collapse of negotiations eliminates the off-ramp that had previously contained the crisis, pushing crude prices higher and prompting freight operators to hedge against potential disruptions in the Strait of Hormuz.
Risk assets are under pressure as capital flows into safe-haven assets.
The shift signals that Washington has exhausted its patience with Tehran’s negotiating tactics.