Brent crude and WTI crude climbed sharply in session as the United States and Saudi Arabia launched joint airstrikes against Iran-backed militias in Iraq.
The military operation marks a significant escalation in regional hostilities, coming shortly after a temporary pause in fighting and following a recent attack on a US military base in Jordan.
President Donald Trump warned that Iran would face severe consequences for the Jordan incident, stating the country would receive a "beating" if it continued to support attacks on US interests.
The administration's hardline stance, combined with the immediate kinetic response in Iraq, has forced markets to reassess the risk of broader conflict in the Middle East.
The strikes target militias deployed in Iraq that are supported by Tehran, signaling a direct challenge to Iran's proxy network.
This development follows previous warnings from the US president that Iranian infrastructure would be targeted for any attacks on commercial shipping in the Strait of Hormuz.