Crude oil prices are ticking higher as US President Donald Trump vowed to "finish the job" in Iran, reigniting concerns over potential supply disruptions in the Middle East.
The comments mark a hardening of tone in US-Iran relations, shifting market sentiment away from the peace hopes that had previously weighed on energy markets.
Brent crude is trading modestly higher in early trade, reversing the slide that saw prices fall to pre-war lows earlier in the week.
The price action reflects a repricing of geopolitical risk, with traders assessing the likelihood of renewed tensions affecting shipping routes through the Strait of Hormuz.
European equities are also poised for a positive open, with futures pointing to broad gains across the Stoxx 600, Germany’s Dax, and the UK’s FTSE 100.
The rally in stocks is driven by the same energy sector strength that is supporting broader market sentiment, as investors weigh the fresh developments in US-Iran negotiations.