Crude oil prices rallied sharply on Thursday as the resumption of heavy bombardment between the United States and Iran shattered expectations of a near-term de-escalation.
The US President declared the ceasefire effectively over, signaling a return to active hostilities that has forced traders to reassess the timeline for a full restoration of Persian Gulf crude flows.
With the conflict now entering its fifth month, markets are pricing in a prolonged period of supply uncertainty rather than a quick return to pre-war stability.
The price surge reflects a rapid repricing of geopolitical risk premiums.
After crude had retreated earlier in the week on reports of potential diplomatic progress, the renewed violence triggered a sharp reversal.
Investors are now betting that the physical disruption to shipping and production infrastructure will persist, keeping a lid on available supply.