Brent crude prices staged a sharp recovery on Monday, reversing a recent downturn as geopolitical tensions in the Middle East flared anew.
The rebound was triggered by reports of a new attack on a commercial vessel off the coast of Oman, raising immediate concerns about the safety of shipping routes through the Strait of Hormuz.
The incident comes amid growing skepticism regarding the durability of diplomatic efforts between the United States and Iran.
Markets are pricing in a heightened risk premium as traders assess the potential for further disruptions to energy flows.
The Strait of Hormuz remains a critical chokepoint, handling a significant portion of global oil trade, and any threat to its stability sends immediate shockwaves through energy markets.
This latest development follows a period of intense volatility.