Brent crude surged to $86 a barrel on Tuesday, marking its highest level in two months as renewed hostilities in the Middle East intensified fears of supply disruptions.
The sharp move in energy prices coincided with a rise in borrowing costs, which also reached their highest point since May, reflecting broader market anxiety over the economic impact of escalating geopolitical tensions.
The price spike follows a period of heightened volatility in energy markets, driven by concerns over shipping routes through the Strait of Hormuz.
Investors are increasingly pricing in the risk of sustained supply constraints as the conflict expands, pushing benchmark crude prices well above recent averages.
The move underscores the sensitivity of global energy markets to geopolitical instability in key production regions.
This development comes after crude oil prices had already climbed to a one-month high earlier in the week, following US military strikes on Iran.