Brent crude prices jumped nearly 6% in early trading on Wednesday, driven by reports that the US administration has formally ended the ceasefire framework with Iran.
The sharp repricing reflects immediate market concern over renewed military hostilities and the potential for further disruption to shipping lanes in the Strait of Hormuz, a critical chokepoint for global energy supplies.
The move marks a significant escalation in geopolitical tensions, reversing recent diplomatic progress that had begun to ease risk premiums in energy markets.
According to Tagesschau, the US declaration of the framework's termination has prompted urgent calls for de-escalation from mediator Qatar, though the market reaction suggests investors are prioritizing the immediate supply risk over diplomatic overtures.
This development extends the volatility arc that has defined the oil market since the onset of the Iran conflict.
Oil prices had already climbed to their highest levels since the conflict began, as traders priced in persistent risks from mines and infrastructure damage in the Strait.