Oil prices climbed to their highest level in nearly two months as geopolitical tensions in the Middle East intensified, driven by a dual threat of expanded US military action and renewed disruptions to Red Sea shipping lanes.
The market repricing reflects growing concerns over supply chain stability and the potential for broader conflict in key energy transit corridors.
US President Donald Trump announced that American forces would broaden their bombing campaign to include a nuclear site known as Pickaxe Mountain, located 220 kilometres south of Tehran.
This escalation marks a significant shift in the US military posture toward Iran, moving beyond previous targeted strikes to include strategic infrastructure.
The announcement comes as the conflict appears to be widening, with Iran reportedly expanding its own strikes to include Gulf states.
Simultaneously, Houthi rebels in Yemen have forced tankers to turn around in the Red Sea, effectively threatening a naval blockade of Saudi ports.