Brent crude oil prices jumped 7% in the session, returning to the $90 per barrel level as geopolitical tensions intensified.
The sharp rise in energy costs coincided with a broad retreat in equity markets, reflecting growing investor caution ahead of the Federal Reserve's upcoming interest rate decision.
5% on Tuesday, buoyed by rising oil prices and a broader rally in New York equities.
Wall Street indices fell as much as 1.3%, with the Nasdaq Composite among the losers.
The sell-off extended to emerging markets, where Argentina's benchmark S&P Merval index dropped 0.4%.
Argentine sovereign bonds also weakened, pushing the country's risk premium higher to 446 basis points.
The market move reverses a brief rally seen earlier in the week, when the S&P Merval had climbed 1.5% on Tuesday, buoyed by rising oil prices and a broader rally in New York equities. The current volatility underscores the sensitivity of global markets to energy supply disruptions and shifting monetary policy expectations.