Brent Crude Remains Above $104 Amid Fragile US-Iran Ceasefire Talks

Global oil prices remained elevated on Monday after US President Donald Trump questioned the durability of the ceasefire with Iran, raising fresh concerns about prolonged disruptions to energy supplies from the Middle East. Brent crude continued trading above $104 a barrel after rising 2.9 per cent in the previous session, while West Texas Intermediate crude hovered near $98 amid renewed geopolitical uncertainty.

Market attention remains firmly focused on the Strait of Hormuz, one of the world’s most critical energy chokepoints through which a significant portion of global crude oil, liquefied natural gas and refined fuel shipments pass. Trump said the ceasefire was on “massive life support” after rejecting Tehran’s latest response to a US-backed peace proposal intended to end the 10-week conflict. The remarks triggered fears that instability in the region could continue to disrupt shipping and global energy flows.

According to reports, Iran has demanded that Washington lift its naval blockade and ease sanctions while also allowing Tehran to retain some level of control over maritime traffic in the Strait of Hormuz. Trump is expected to meet his national security team to discuss the crisis and possible next steps, including renewed military action. He also indicated that the United States was considering reviving naval escort operations for commercial vessels travelling through the strategic waterway.

Also Read: Brent Crude Near $98 As Trump Maintains Iran Truce But Keeps Hormuz Blockade

Although a ceasefire has technically remained in place since early April, repeated incidents involving attacks on vessels and shipping restrictions have prevented normal trade activity from resuming. The prolonged disruption has also begun affecting domestic politics in the United States, where rising fuel prices have increased inflation concerns ahead of the upcoming midterm elections. The US administration has already released emergency oil reserves in an attempt to stabilise petrol prices.

The conflict is also expected to feature prominently in discussions between Trump and Chinese President Xi Jinping, particularly over Beijing’s continued imports of Iranian crude oil. The US Treasury has recently imposed additional sanctions on entities accused of facilitating oil sales between Iran and China. Meanwhile, Saudi Aramco chief executive Amin Nasser warned that global markets were losing nearly 100 million barrels of supply for every week the Strait of Hormuz remained effectively restricted.

Despite the sharp rise in prices, some indicators suggest that immediate supply tightness has slightly eased in recent weeks. Brent crude’s prompt spread — a key market gauge for near-term supply conditions — has narrowed significantly from nearly $10 a barrel last month to around $4. However, analysts continue to warn that any further escalation in the Gulf region could rapidly intensify volatility in global energy markets and prolong uncertainty for oil-importing economies worldwide.

Also Read: Brent Crude Near $98 As Trump Maintains Iran Truce But Keeps Hormuz Blockade