Crude oil prices are climbing as geopolitical tensions in the Gulf region intensify, driven by renewed hawkish rhetoric from US President Donald Trump.
The escalation in diplomatic language has triggered a repricing of risk across global markets, with energy assets outperforming while equities face renewed selling pressure.
Investors are increasingly concerned that the current dynamic mirrors the volatility seen in March, when similar geopolitical shocks disrupted market stability.
The surge in oil prices reflects a growing risk premium as traders assess the durability of the fragile interim peace agreement in the region.
Trump’s recent statements, including threats of renewed military action against Iran, have cast doubt on the stability of the current geopolitical order.
This uncertainty is driving capital into safe-haven assets and energy commodities, while broadening the selloff in risk-sensitive sectors such as technology and consumer discretionary.