Brent crude futures climbed to $85.72 per barrel, while WTI rose to $79.98, as worsening hostilities in West Asia triggered a fresh wave of supply concerns among energy traders.
The sharp repricing marks a significant reversal from earlier in the month, when prices had softened toward $72 amid hopes that diplomatic engagement between the US and Iran would de-escalate the conflict.
The market move reflects growing anxiety over the security of key shipping routes, particularly the Strait of Hormuz, which remains a critical chokepoint for global oil flows.
Recent incidents, including an Iranian vessel running aground in the strait and warnings against bypassing designated routes, have heightened the risk premium embedded in energy prices. Investors are now pricing in the potential for further disruptions to maritime trade as military activity intensifies.
This escalation follows a period of heightened volatility, with crude markets recording their largest two-day percentage gain in four months earlier in the week.
The current surge underscores how quickly sentiment can shift from diplomatic optimism to geopolitical risk aversion.
Gold prices retreated in the session, suggesting a rotation in safe-haven demand toward tangible supply-sensitive assets like oil.