Brent and WTI crude prices reversed earlier losses to climb sharply on Tuesday, driven by reports of renewed military activity in the Middle East.
The market move followed confirmation that US and Saudi Arabian forces conducted strikes on multiple logistical and weapons sites linked to terrorist groups in eastern Iraq.
The escalation marks a significant intensification of hostilities in the region, reigniting investor concerns over potential disruptions to critical energy infrastructure and supply routes.
The price action reflects a rapid repricing of geopolitical risk after crude had softened in the previous session.
Traders are closely monitoring the scope of the joint US-Saudi operations and their potential to draw in other regional actors.
The strikes come amid a broader backdrop of heightened tensions involving Iran, which has previously targeted US forces, adding a layer of complexity to the security environment.