Brent climbed 2.3% to trade near $76 a barrel after the US launched fresh airstrikes in Iran and revoked a waiver that allowed it to sell oil globally after attacks on ships in the Strait of Hormuz. The broader equity-market reaction was relatively contained, with the MSCI Asia Pacific Index steady after losing nearly 1% in opening minutes. S&P 500 futures were up 0.1% and contracts for the Nasdaq 100 rose 0.3%.

The moves came after US benchmarks fell on Tuesday, with a gauge of chip stocks dropping more than 4%. The Nasdaq 100 slid 1.8%.

The latest escalation in geopolitical tensions risks triggering renewed disruption in energy markets and undermining the interim US-Iran peace deal reached last month. It adds another layer of uncertainty in equity markets, where investors have already grappled with sharp volatility in recent weeks amid concern the artificial intelligence-fueled rally has run too far, too fast.

“After AI and tech sentiment had dominated market moves over the last couple of weeks, investors are now forced to move back to focusing on geopolitical tensions,” said Nick Twidale, chief market analyst at AT Global Markets. “And this should dominate market sentiment, especially if we see a further escalation in the coming sessions.”

Brent oil prices had touched a peak near $125 a barrel in late April, two months after the US and Israel began the military campaign against Iran. Prices returned toward pre-conflict levels on growing signs of a recovery in supplies after the peace deal.

American forces concentrated on Iranian air defenses and weapons launchers in the attacks, according to a US official. Iran’s Mehr News Agency reported explosions were heard near the strait. Elsewhere in markets, the Bloomberg Dollar Spot Index rose 0.1%. Treasuries were steady while yields on Australian and Japanese 10-year bonds climbed. Gold rose above $4,100 an ounce.

“At the margin, the spike in oil prices and the removal of the Iranian oil waiver strengthens the case for central banks to deliver precautionary rate hikes due to the ongoing risk of second round inflation taking hold,” said Sean Keane, chief strategist for Asia Pacific at JB Drax Honore.