Oil prices jumped sharply on Monday after President Donald Trump declared the US ceasefire with Iran null and void, ordering new military strikes against the country.
The announcement follows recent attacks on commercial vessels in the Strait of Hormuz, marking a significant escalation in tensions between Washington and Tehran.
This development reverses the diplomatic progress that had briefly calmed markets earlier in the week.
The immediate market reaction was a surge in crude benchmarks as traders repriced the risk of supply disruptions in one of the world's most critical energy chokepoints.
Brent crude and WTI both extended their recent gains, reflecting heightened anxiety over potential blockades or transit restrictions in the Gulf.
The move underscores how quickly geopolitical sentiment can override fundamental supply-demand dynamics when route security is threatened.