Brent crude futures climbed above $78 a barrel on Thursday, reversing a multi-week downtrend as fresh US military strikes on Iran reignited fears of prolonged supply disruptions in the Middle East.
The escalation has significantly dampened market expectations for a rapid de-escalation and the full reopening of the Strait of Hormuz, a critical chokepoint for global oil flows.
WTI crude also advanced, trading near $74.26 a barrel, reflecting broad-based risk premium repricing across energy markets.
The price surge marks a sharp pivot from the sentiment that dominated early July, when diplomatic progress and easing tensions had driven oil prices to multi-month lows.
Just days ago, traders were pricing in a swift normalization of shipping routes, with Brent sliding below $71 as hopes for a US-Iran ceasefire gained traction.
The latest military action has effectively reset that narrative, forcing investors to reassess the timeline for supply stability.