Brent crude climbed and US stock futures retreated Sunday as the United States and Iran exchanged another round of airstrikes, deepening the military confrontation in the Middle East.
The escalation marks a continuation of the conflict that has already triggered significant volatility in global energy markets.
The renewed hostilities have reignited fears that the conflict could drag on and severely disrupt global energy flows.
Oil prices had already climbed sharply earlier in the week following the launch of a new round of US military strikes against targets in Iran.
The latest flare-up suggests that the risk premium embedded in energy prices is likely to persist or widen as traders assess the potential for broader regional instability.
Equity markets reacted negatively to the heightened geopolitical tension.