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, sent energy prices higher in early trading on Wednesday, with Brent jumping nearly 6% on the day.
The surge reflects a rapid repricing of geopolitical risk in the energy complex.
Traders are weighing the potential for renewed disruptions to Iranian oil exports and shipping routes, particularly in the Strait of Hormuz, which handles a significant portion of global crude flows.
The move comes amid heightened tensions, with Iran previously warning of forceful responses to tankers deviating from approved routes in the strait.
This development marks a sharp escalation in the diplomatic standoff, reversing the cautious optimism that had supported markets in recent weeks.
The declaration that the ceasefire is "over" introduces significant uncertainty regarding future US-Iran relations and the stability of Middle Eastern energy supplies.