Crude oil prices spiked more than 4% on Sunday as fresh U.S. military strikes against targets in Iran reignited fears of a prolonged conflict and severe disruption to global energy flows.
The escalation marks a significant deterioration in the security environment, effectively ending hopes for a near-term stabilization of supply routes in the region.
The market reaction was immediate and broad.
Brent crude and WTI benchmarks surged sharply, reflecting a rapid repricing of geopolitical risk premiums.
Investors are now pricing in the possibility of sustained supply constraints, particularly given Iran's strategic position in global oil transit.
The move underscores the market's sensitivity to any breakdown in the fragile ceasefire dynamics that had previously capped energy volatility.