Brent Crude Soars Past $107 As Geopolitical Anxiety Grips Global Energy Supply Markets

Brent crude, the global oil benchmark, rose sharply on Monday, climbing 3.2% to $107.65 per barrel as dialogue between Iran and the United States appeared to reach an impasse. The surge shows how sensitive energy markets remain to developments in West Asia and to the lack of clarity on whether peace negotiations are making progress. Other outlets reported Brent gaining more than 3% in Asian trading, with West Texas Intermediate also higher, adding fresh upward pressure on inflation. Figures varied slightly by outlet and time of day, but all pointed to a market unsettled by the standoff. 

The immediate trigger was President Donald Trump's rejection of an Iranian proposal to reopen the Strait of Hormuz. Iran had offered to reopen the strait and restore normal maritime traffic within seven days as part of a broader agreement to end the conflict. Trump told Axios on Sunday that Tehran wants a deal, but not the one he wants, and said Iran had overplayed its hand. He nonetheless said he expects negotiators to hold further talks with Tehran this week. Asked whether he was considering resuming strikes against Iran, he replied that he is always thinking about it. 

Iranian Foreign Minister Abbas Araghchi responded by saying Tehran is fully prepared for the war to resume. He said Iran would stand firm against any new aggression, even if it became a "doomsday war." He also said Iran has no reason to return to diplomacy with this administration, citing repeated US attacks on Iran during Trump's second term. Even so, Araghchi said Iran remains willing to negotiate, adding that he and President Masoud Pezeshkian went to New York to pursue peace rather than war. Pezeshkian told CBS that Tehran will discuss its nuclear program and other issues, but not under bullying or coercion. 

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Iran has also set out conditions. Araghchi said Tehran remains willing to reopen the strait as part of a deal ending the conflict, but wants its frozen assets released and the freedom to sell its oil. He added that Iran had not yet received an official rejection through the mediators handling communications between the two governments. The gap between the two positions, and the mixed signals from Washington, leave the path to a settlement unclear and keep traders alert to any shift in tone from either side. 

The Strait of Hormuz is a critical route for global energy shipments, and oil prices have swung sharply around the conflict. In April, Brent fell 9% to about $90 after Iran's foreign minister declared the strait open, then jumped as problems persisted. Analysts say the latest rise restores a geopolitical premium after Friday's brief relief rally faded. Some observers note that markets are pricing in a less acute supply shock than at the start of the war, and Saudi Arabia's East-West pipeline has reportedly reopened after a Houthi attack earlier this month. 

The effects extended beyond commodities. US Treasuries slipped as concerns over Middle East tensions returned. Indian shares fell to near six-month lows, extending a seven-week losing streak, as higher oil prices weighed on sentiment. Traders will now watch whether negotiators return to the table this week and whether either side softens its conditions. Until there is clearer progress, analysts expect oil prices to stay volatile and highly reactive to statements from Washington and Tehran. That has implications for inflation and for import-dependent economies across Asia and beyond.

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