Brent crude prices climbed sharply on Wednesday as the conflict between the United States and Iran intensified, sending shockwaves through global financial markets.
The price surge followed reports of new US air strikes on targets within Iran, marking a significant escalation in the ongoing geopolitical confrontation.
The immediate market reaction was one of heightened volatility and risk aversion.
Energy benchmarks rallied on fears of potential supply disruptions, while equity markets across Asia faced selling pressure.
Investors are increasingly pricing in the risk that the conflict could spread to critical shipping chokepoints, threatening global energy infrastructure and trade routes.
This development represents a sharp deterioration from the situation earlier in the week.