West Texas Intermediate crude jumped 2.9% to $72.46 a barrel in early Asian trade, marking a sharp reversal from the multi-month lows seen earlier this week.
The rally follows reports that the US military launched a series of strikes against targets in Iran, escalating tensions after recent attacks on shipping vessels in the region.
This development stands in stark contrast to the sentiment just days ago, when Brent crude slid below $71 as investors believed a de-escalation was underway.
The price move signals that traders are rapidly repricing the risk of supply disruption, undoing the relief rally that had pushed oil lower as diplomatic talks between Washington and Tehran appeared to progress.
The Strait of Hormuz, through which a significant portion of global oil flows, remains a critical chokepoint, and any further military activity threatens to tighten supplies immediately.
This development stands in stark contrast to the sentiment just days ago, when Brent crude slid below $71 as investors believed a de-escalation was underway.
The sudden shift back to conflict mode highlights the fragility of the current energy market equilibrium, where geopolitical headlines continue to drive volatility more than fundamental supply-demand dynamics.