Brent crude prices climbed in early trading as geopolitical risk premiums returned to energy markets.
The move follows reports that the 60-day ceasefire agreement between the United States and Iran is effectively collapsing, with both nations reverting to entrenched diplomatic stances.
This deterioration in relations has heightened uncertainty regarding the security of shipping lanes through the Strait of Hormuz, a critical chokepoint for global oil supplies.
The breakdown of the truce signals a return to heightened tensions in the Persian Gulf.
Market participants are pricing in the potential for renewed disruptions to tanker traffic, which could constrain supply and drive energy costs higher.
The Strait of Hormuz remains a focal point for risk, as any escalation threatens to interrupt a significant portion of global crude shipments.