Brent crude futures climbed sharply to $94.83 a barrel, gaining $3.82 in the session as traders reassessed supply risks in the Middle East.
The move marks a significant reversal from the previous week, when oil prices had cooled following the announcement of a US-Iran ceasefire agreement.
The price surge reflects growing anxiety among market participants regarding potential interruptions to key shipping routes in the region.
Despite the diplomatic de-escalation that briefly calmed energy markets, underlying geopolitical tensions continue to weigh on supply expectations.
Traders are now pricing in a higher risk premium for Middle Eastern crude, driven by fears that shipping disruptions could persist or worsen.
This development comes as the US dollar weakened against major currencies, touching a six-year low earlier in the week on the back of disappointing US labor market data. A softer greenback typically supports higher commodity prices, adding further upward pressure on oil.
The combination of geopolitical risk and currency dynamics has created a volatile trading environment for energy assets.