Brent crude futures surged past $87 a barrel on Wednesday, driven by a confluence of intensifying geopolitical risk and tightening supply fundamentals.
The benchmark contract gained nearly 4% in the session, marking a significant repricing of Middle East risk after days of relative calm.
The rally was triggered by reports of joint US-Saudi military strikes against Iran-backed groups in Iraq, followed by an Iranian missile attack targeting US forces.
These developments have sharply elevated the premium for shipping and production security in the Gulf region.
Simultaneously, data showed a sharp decline in US crude inventories, reinforcing the narrative of a tightening physical market.
Traders are also factoring in the possibility that OPEC+ may pause planned output hikes in response to the escalating tensions.