Iran has vowed to retaliate after a Ukrainian attack on a commercial vessel in the Caspian Sea, marking a significant escalation in regional hostilities.
Foreign Minister Abbas Araghchi warned on Sunday that the strike would not go unpunished, signaling a potential broadening of the conflict beyond its current boundaries.
The incident adds a new layer of complexity to an already volatile geopolitical landscape.
Iran's armed forces have previously issued direct warnings that any unauthorized interference in the Strait of Hormuz would trigger a swift military response.
The Revolutionary Guard has also stated it would extend the Middle East conflict 'beyond the region' if attacks against Tehran resume.
Markets are likely to react to the heightened risk premium associated with energy supply disruptions.