WTI and Brent crude prices spiked sharply in early Asian trading on Thursday following reports of fresh U.S. military strikes on Iranian targets.
Reports of the strikes stoked fears that recent peace talks could collapse and give way to a broader escalation in the conflict.
West Texas Intermediate (WTI) was trading at $90.51 per barrel at the time of the report, representing a gain of 2.06% on the session.
Brent crude climbed 2.17% to trade at $96.34 per barrel, with both benchmarks posting significant gains as markets responded to the new developments.
The latest price surge follows a sharp pullback earlier in the week, when both benchmarks dropped by more than 7% over several sessions.
That decline came as traders grew increasingly optimistic that a potential agreement could be reached to restore traffic through the Strait of Hormuz.
The Strait of Hormuz is a critical global shipping chokepoint, and any disruption to transit through the waterway carries significant implications for global oil supply.
The renewed strike reports appear to have swiftly erased the cautious optimism that had weighed on prices in prior sessions, sending markets back into risk-alert territory.
The scale and speed of the reversal underscore how sensitive energy markets have become to any shift in the diplomatic or military situation involving Iran.
Traders are now closely watching for further developments from both sides, as any sign of continued military action or a breakdown in talks could push prices even higher.
