Brent crude futures climbed more than 3.2% on Sunday as fresh military exchanges between the United States and Iran cast renewed doubt on the security of the Strait of Hormuz.
The price surge marks the latest escalation in a volatile week for energy markets, driven by conflicting reports from both sides regarding the operational status of the critical waterway.
The repricing reflects deepening anxiety among traders that the tenuous ceasefire holding the region together is fracturing.
With the Strait of Hormuz serving as a primary artery for global oil shipments, any ambiguity about its openness translates immediately into supply risk premiums.
The market is pricing in the possibility that shipping disruptions could persist or worsen if diplomatic channels fail to de-escalate the immediate tension.
This development follows a series of sharp moves in crude prices over the past week.