Brent crude oil rose 2.8% to $99.99 a barrel and WTI crude increased 2.9% to $90.37 a barrel, driven by heightened Middle East tensions and market doubts about a swift end to the conflict. Traders reacted negatively to contradictory U.S. and Iranian statements, with Tehran rejecting peace talks and threatening to close the Bab al-Mandeb Strait, a critical oil transit route. MUFG analyst Soojin Kim noted Iran's potential transit fee imposition would reinforce its Hormuz control.

Benchmark European natural gas prices also jumped 2.7% to €54.23 per megawatt-hour. U.S. equity futures pointed to a potential market reversal, with Dow futures down 0.6%, S&P 500 futures down 0.65%, and Nasdaq futures down 0.8%.