The United States has declared control over the Strait of Hormuz, with President Donald Trump announcing plans to charge fees to vessels for safe passage through the narrow waterway.
The move marks a significant escalation in the ongoing geopolitical standoff with Iran, which has also asserted dominance over the critical shipping lane.
Brent crude prices faced renewed upward pressure as markets digested the implications of the US proposal.
The threat of transit fees introduces a new layer of uncertainty for global oil flows, with traders assessing the potential for increased shipping costs and possible disruptions to Middle East energy exports.
Asian equities slid in early trading as fears over oil supply stability intensified.
The Strait of Hormuz remains a vital chokepoint, handling roughly a fifth of global oil consumption.