Brent crude oil surged to over $84 a barrel after a nearly 10% jump, as fighting in the Middle East intensified. US benchmark crude also climbed to $79.20.
The conflict has blocked tanker traffic through the Strait of Hormuz, a critical shipping lane. Both the US and Iran claim control of the waterway, deepening supply uncertainty.
Global markets reacted negatively. Asian indices fell overnight, and US share futures dropped 0.3%. On Wall Street, the S&P 500 fell 0.8%, with tech stocks like Nvidia and Micron leading the decline.
Investors are now focused on a wave of quarterly earnings reports from major US banks. Analysts forecast strong profit growth for S&P 500 companies, but rising oil prices threaten to fuel inflation and potential interest rate hikes.