Brent crude futures jumped more than 6.3% in extended trading Tuesday after the US Central Command confirmed a new round of military strikes against Iran.
The offensive marks a sudden and severe escalation, overturning the fragile de-escalation that had briefly calmed markets earlier in the week.
After Brent had risen approximately 2% on Monday as traders digested reports of a US-Iran ceasefire agreement, the fresh attacks have instantly reversed that sentiment.
The price surge reflects a rapid repricing of supply disruption risk.
After Brent had risen approximately 2% on Monday as traders digested reports of a US-Iran ceasefire agreement, the fresh attacks have instantly reversed that sentiment.
Markets are now pricing in the immediate threat to Persian Gulf shipping lanes and potential output disruptions from Iranian facilities.
This development follows a weekend of military strikes that had already raised concerns about regional stability.