Brent crude prices surged approximately 5% in early trading Wednesday, driven by reports that US forces launched a series of airstrikes against targets in Iran.
The escalation marks a significant intensification of the ongoing military confrontation in the Middle East, reigniting fears of supply disruptions in a key producing region.
The spike in energy costs weighed heavily on risk sentiment, sending US stock futures into the red.
The Dow Jones Industrial Average futures declined as investors reassessed the macroeconomic impact of higher oil prices and the potential for broader regional instability.
The move reflects a classic risk-off dynamic, where geopolitical shocks drive capital away from equities and into safe havens and commodities.
This development follows a volatile weekend, during which Brent crude and US stock futures had already moved higher after the US and Iran exchanged further airstrikes.