Brent crude futures jumped nearly 6% in early trading on Wednesday, reaching $77.30 a barrel, after US President Donald Trump declared that the ceasefire agreement with Iran was "over." The remark, first reported by Bloomberg, triggered an immediate repricing of geopolitical risk across energy markets.
The sharp move reflects investor anxiety over potential supply disruptions in the Strait of Hormuz, a critical chokepoint for global oil shipments.
Markets have shown a short memory for stability, quickly pivoting back to risk premiums as diplomatic tensions between Washington and Tehran escalated.
This development follows a period of relative calm that had seen oil prices stabilize.
The sudden reversal underscores the fragility of the current geopolitical equilibrium and the sensitivity of energy markets to political rhetoric.
Traders are now assessing the likelihood of renewed military activity or sanctions that could impact Iranian exports.