Oil prices climbed Wednesday as a tentative stock market recovery fizzled amid growing skepticism about Middle East peace prospects. Brent crude surged to $110.35 per barrel while WTI reached $96.64, reflecting heightened concerns about energy supply disruptions in the region.

Markets had rallied earlier after President Trump extended a U.S. pause on attacks against Iranian energy infrastructure, offering temporary relief for investors. This diplomatic gesture provided a brief respite from escalating tensions that have roiled global energy markets for weeks.

A Wall Street Journal report suggesting the Pentagon is considering deploying 10,000 additional troops to the Middle East quickly erased those gains. Military escalation fears overshadowed diplomatic efforts, pushing Brent crude above the $110 psychological threshold and dampening investor sentiment.

The rising energy costs threaten corporate profit margins and consumer spending power, creating headwinds for economic growth. Oil markets remain hostage to geopolitical uncertainty with no clear resolution in sight.