Brent crude futures are trading near $98.70 a barrel, up roughly 5% in the session, as markets price in the escalating risk of a prolonged blockade in the Strait of Hormuz.
The benchmark is closing in on the $100-a-barrel level, a psychological threshold that has not been breached in recent months despite earlier volatility.
This move follows a period of heightened tension in the region, where previous reports indicated that oil markets were bracing for a potential surge to $100.
The sharp repricing reflects growing investor anxiety over global energy supply constraints.
With the Strait of Hormuz serving as a critical chokepoint for global oil shipments, any sustained disruption threatens to exacerbate already tight inventories.
Traders are reacting to the immediate threat of supply shortages, pushing risk premiums higher across energy complexes.
This move follows a period of heightened tension in the region, where previous reports indicated that oil markets were bracing for a potential surge to $100.