Crude oil prices extended their upward trajectory on Wednesday, driven by a sharp deterioration in US-Iran relations.
President Donald Trump has reimposed a naval blockade on all Iranian ports, a move that coincides with Tehran launching strikes on US infrastructure in the region.
This follows a period of volatility where Brent crude had already jumped over 2% on reports of initial strikes.
The dual escalation marks a significant breakdown in the fragile truce that had briefly calmed market nerves earlier in the week.
The renewed hostilities have reignited concerns over supply disruptions in the Strait of Hormuz, the critical chokepoint through which a substantial portion of global oil shipments pass.
Traders are pricing in a higher risk premium as the prospect of a sustained ceasefire fades, with shipping routes facing renewed exposure to military activity.
This follows a period of volatility where Brent crude had already jumped over 2% on reports of initial strikes.
The blockade represents a hardening of the US stance, moving beyond preliminary diplomatic friction to direct naval enforcement.
For energy markets, this signals that the geopolitical risk premium is not just a temporary spike but a structural feature of the current trading environment.