Oil markets react to heightened geopolitical risks after recent US-Iran military exchanges in the Middle East.
West Texas Intermediate crude futures climbed 3.2% to $87.40 a barrel as investors assessed the risk of supply disruptions. The move follows a US airstrike in Iraq targeting an Iran-backed militia group, raising concerns over regional stability.
Prices had traded near $85 earlier in the session before the strike was reported. Analysts noted that similar geopolitical flare-ups in 2020 and 2019 led to temporary spikes of 5-8% in crude benchmarks.
Traders shifted into safe-haven assets, with gold and the Japanese yen also gaining ground. Energy stocks outperformed broader equity indices in early trading.