Brent crude prices surged in the session as traders reacted to a new geopolitical risk factor in the Middle East.
US President Donald Trump announced plans to impose fees on cargo ships transiting the Strait of Hormuz, a move that immediately sparked concerns over supply chain disruptions and higher energy costs.
The proposal introduces a direct fiscal threat to one of the world's most critical oil export routes, where roughly a fifth of global oil consumption passes daily.
The market repricing was swift and severe.
Oil benchmarks jumped as investors priced in the potential for immediate shipping bottlenecks and elevated insurance premiums.
The surge in energy costs weighed heavily on broader equity markets, with Wall Street indices retreating as the outlook for corporate margins and consumer spending darkened.