Brent crude tops $110 as Trump unhappy with Iran's proposal to end war

Brent crude futures surged above $110 per barrel and reached about $111.51 for June delivery as diplomatic talks to end the U.S.–Iran conflict appeared to stall. Reuters reported that U.S. President Donald Trump was unhappy with Iran’s proposal because it did not address Tehran’s nuclear programme, a development that lifted geopolitical risk premia across energy markets.

According to the Reuters dispatch, June Brent rose $3.28, or roughly 3%, to $111.51 by 11:15 GMT, with an intraday peak near $111.86. U.S. West Texas Intermediate (WTI) for June also climbed to about $99.84 per barrel. Reuters cited ship-tracking data showing significant disruptions in the Strait of Hormuz and noted that several tankers had been forced to turn back due to the ongoing blockade and related naval actions.

The market reaction reflected renewed concern about physical supply rather than demand fundamentals. Traders pushed up option and futures prices as the potential for prolonged disruption to a key export route — responsible for roughly 20% of global oil and gas flows before the conflict — increased. The Brent contract’s streak of consecutive daily gains signals that participants are currently prioritising geopolitical risk in price discovery.

In the broader context, the closure or partial closure of the Strait of Hormuz has immediate implications for global inventory balances and inflationary pressures. Reuters reporting estimated that pre-conflict transits numbered between 125 and 140 vessels daily; the present disruptions equate to multi-million-barrel-per-day effective supply losses. Such sustained supply-side shocks complicate central bank assessments of core inflation and may prolong elevated energy-driven headline inflation.

Analysts warn that if diplomatic momentum stalls, upside risks to oil will persist. Rystad Energy analyst Jorge Leon told Reuters that oil trading above $110 reflects a rapid repricing of geopolitical risk. For markets, the near-term watchlist includes further diplomatic communications, shipping and tracking updates, and official supply-data releases; any sign of Houthi/Iranian concessions or a clear U.S.-backed reopening pathway for Hormuz would be the most direct relief for prices.