Brent crude futures climbed to $77.30 a barrel, gaining $1.50 since midnight, as markets reacted to reports that US President Donald Trump has declared the ceasefire with Iran over.
The remark, first reported by Bloomberg, signals a rapid deterioration in diplomatic relations and raises immediate concerns about potential disruptions to global energy supplies.
The price spike follows a period of heightened volatility after Trump previously threatened to attack Iran "very hard" and seize key oil infrastructure points, including ports and refineries.
Those earlier comments had already sent oil prices sharply higher, but the latest declaration that the truce is effectively ended has intensified fears of a broader military escalation.
Traders are now pricing in a significant risk premium as the prospect of direct US military action against Iranian energy assets moves from rhetoric to apparent policy.
The Strait of Hormuz, through which a substantial portion of global oil exports pass, remains a critical chokepoint in this scenario.