Brent crude futures climbed sharply in early trading as the US-Iran conflict escalated beyond direct strikes on Iranian soil.
Reports indicate that Iran launched retaliatory attacks on Bahrain, home to the US Fifth Fleet, following a new round of American airstrikes triggered by the death of a US service member.
The move marks a significant widening of the conflict zone, directly threatening key US military infrastructure in the Gulf region.
The escalation has reignited fears of a prolonged supply disruption in the Strait of Hormuz, reversing the recent calm that had seen oil prices retreat to pre-war lows.
With the US Fifth Fleet's base now under fire, traders are repricing the risk of broader regional engagement and potential closures of critical shipping lanes.
The market is moving away from the narrative of a contained diplomatic standoff toward one of active, multi-front military confrontation.