Crude oil prices rallied sharply on Monday as the United States and Iran engaged in their most intense military exchange since the collapse of the June ceasefire.
Reports indicate that both sides launched new attacks centered on the Strait of Hormuz, raising immediate concerns about the security of one of the world's most critical energy chokepoints.
The escalation marks a significant deterioration in regional stability.
Following the breakdown of the truce earlier this year, Iran had already expanded its military campaign, drawing Jordan and Bahrain deeper into the conflict.
The latest wave of strikes, however, represents a direct confrontation between Washington and Tehran, effectively ending any lingering hopes for a near-term diplomatic resolution.
Markets reacted swiftly to the heightened risk premium.