Crude oil prices surged sharply as the United States indicated that the Iran ceasefire agreement has effectively collapsed, reigniting fears of supply disruption in the Middle East.
The development triggered a rapid repricing of geopolitical risk across energy markets, with traders assessing the potential for renewed conflict to impact global supply chains.
The spike in oil comes as broader equity markets face significant pressure.
Australian shares are poised to open lower, dragged down by a volatile session on Wall Street where US stocks reversed earlier gains.
The sell-off in US equities was driven by shifting sentiment following comments from President Trump regarding Iran, which jolted markets and overshadowed earlier rallies in major technology names including Apple, Broadcom, and Nvidia.
The cross-asset reaction highlights the fragility of current market sentiment.