Global crude benchmarks gapped sharply higher in the opening hours of Sunday-evening Asian trading as traders absorbed reports of direct military action involving Iran and braced for the possibility of supply disruptions across the Persian Gulf.

Brent and U.S. benchmark futures both opened well above Friday’s settlement, with early volume concentrated in front-month contracts. Analysts at several trading desks said the initial move reflected a war-premium repricing rather than any confirmed reduction in physical output.

Currency markets moved in tandem. The dollar firmed against most major peers while traditional safe-haven assets such as gold and the Swiss franc drew bids. Petro-currencies linked to Gulf producers traded mixed as participants weighed the prospect of higher export revenues against the risk of disrupted infrastructure.

Shipping and freight derivatives saw immediate activity. Rates on tanker classes serving the Persian Gulf rose on screens in line with broader risk repricing, with brokers reporting fresh inquiries for vessels and routing alternatives. Insurance markets are expected to reprice war-risk premiums for vessels transiting affected waters when underwriters reopen for the week.

Refiners and end users in Asia and Europe began reassessing near-term feedstock positions. Several large buyers were reported to be reviewing inventory cover and exploring alternative sourcing from Atlantic Basin producers, the United States, and West African suppliers. Strategic petroleum reserves held by major consumer governments returned to the foreground of policy discussions.

Equity index futures pointed sharply lower across major markets, with energy producers among the few sectors trading higher in pre-market activity. Airline, shipping, and consumer-discretionary stocks faced the steepest declines in early indications.

Analysts cautioned that initial repricing typically overshoots in the first sessions of a geopolitical shock and that direction over the coming week will depend on whether physical flows remain intact. The Strait of Hormuz, through which roughly a fifth of global oil supply transits, was identified as the single most consequential variable for the trajectory of prices.

Trading desks reported staffing in for around-the-clock coverage, with risk teams running scenarios on a range of outcomes from rapid de-escalation to a prolonged campaign that draws in shipping and regional infrastructure.