Iran launched overnight attacks on US military forces, prompting an immediate joint response from the United States and Saudi Arabia against Tehran-backed militias in Iraq.
The coordinated strikes abruptly ended a days-long ceasefire, marking a sharp escalation in regional hostilities.
Brent crude futures surged in early trading as traders repriced the risk of supply disruption in the Persian Gulf.
The sudden breakdown of the truce has heightened concerns over the security of key shipping lanes and potential spillover effects on global energy flows.
This development follows a series of Iranian strikes on US facilities in Bahrain and Kuwait, which had already strained diplomatic efforts to de-escalate tensions.
The involvement of Saudi Arabia in the counteroffensive signals a broader coalition response to Iranian aggression, potentially altering the strategic balance in the region.