Brent Crude Oil Price Today: Brent Crosses $105 as US Rejects Iran Peace Offer, Reigniting Supply Fears and Volatility

Mumbai, May 11: Oil prices surged after U.S.–Iran tensions escalated again as American President Donald Trump rejected Iran’s response to a U.S.-backed peace proposal, sparking fears of supply disruptions through the Strait of Hormuz once again. The deadlock offset recent optimism around diplomacy, heightening geopolitical risk and pushing crude prices higher. 

Benchmark Brent crude climbed more than 4% as prices crossed the $105 per barrel mark, while U.S. West Texas Intermediate also saw strong gains, rising nearly 5% at $99.95 per barrel. The rally came on the heels of Trump’s statement that Iran’s response to the peace proposal was “totally unacceptable,” raising concerns that negotiations could pause further and prolong instability in the region. The Strait of Hormuz a vital passageway for global energy flows remains central to market anxiety, given its importance to global oil shipments.

Swift Reaction

The markets reacted swiftly to diplomatic developments pertaining to the Middle East as crude surged after talks between the US and Iran failed to throw up any results, thereby reinforcing volatility in an already sensitive region. The pause in diplomatic efforts have led to renewed concerns over disruptions to shipments through the strait, leading to market nerves and wary investors. 

To be sure, uncertainty has been persistent around supply flows through the Middle East so the latest spike does not really come as a surprise. Earlier episodes of flare-ups and escalations have already swung crude prices like a pendulum as investors reacted to headlines announcing ceasefire violations and maritime mayhem in the Gulf. 

With oil markets remaining highly reactive to geopolitical developments arising out of the Middle East, sentiment can shift quickly between optimism and aversion.

Having said that, not all is gloom and doom, as crude prices did ease for some time during the previous week encouraging both the markets and the rupee. But now they are back on the boil.

Key Variable

Global oil market expectations are being shaped by disruptions to shipments from tensions in the Gulf as global agencies warn of tighter supply ahead. 

Flows resuming through the Strait of Hormuz are seen widely as the key factor to monitor, something that could stabilise oil prices and ease global inflationary pressures currently weight on the markets across the globe. 

For consumers and import-dependent economies, sustained oil strength poses inflationary risks and could influence monetary policy outlooks if prices remain elevated. Market participants are also watching inventory data and diplomatic developments closely, as any progress towards reopening shipping lanes could quickly reverse some of the recent gains.

Upward Momentum 

Overall, the surge in oil underscores how deeply geopolitical developments are driving energy markets. With negotiations stalled and tensions elevated, crude prices have regained upward momentum, reinforcing volatility across global asset classes and keeping traders focused on headlines from Washington and Tehran. In the near term, direction will likely depend on diplomatic signals, supply security in the Gulf, and broader macroeconomic cues.

Source: 

• https://oilprice.com/