Oil Prices Climb as Peace Hopes Fade

Oil prices surged after President Donald Trump dismissed Iran’s latest response to a US proposal aimed at ending the ongoing Middle East conflict.
Brent crude futures climbed as much as 4.5% to $105.80 per barrel, while West Texas Intermediate crude traded near the $100 level as traders reacted to rising geopolitical risks and renewed concerns over global energy supplies.
Trump described Iran’s response as “totally unacceptable” in a social media post, signaling growing tensions between Washington and Tehran despite efforts to maintain a fragile ceasefire.
The latest developments weakened optimism surrounding a near-term diplomatic resolution and reignited fears that military hostilities could intensify again across the Gulf region.

Hormuz Closure Continues to Shake Global Energy Markets

The Strait of Hormuz remains the primary focus for energy traders as the critical shipping route continues operating under severe restrictions.
The waterway has been effectively shut since the conflict began at the end of February, sharply reducing exports of crude oil, liquefied natural gas, and refined fuels from major Gulf producers.
Before the conflict, roughly one-fifth of global oil and LNG supplies passed through Hormuz daily.
The prolonged disruption has driven energy prices sharply higher while increasing concerns about inflation, fuel shortages, and slower global economic growth.
The International Energy Agency has described the conflict as creating the largest energy supply shock in modern history.
Analysts said fading hopes for an imminent US-Iran agreement are helping push crude prices higher again.

Shipping Attacks Add to Regional Instability

Security concerns in the Persian Gulf continue escalating despite the ceasefire officially remaining in place.
A drone strike over the weekend briefly set a cargo vessel ablaze near Qatar, marking another attack on commercial shipping since the ceasefire began earlier this year.
The United Arab Emirates and Kuwait also reported intercepting hostile drones in recent days, highlighting the continued instability surrounding Gulf energy infrastructure.
At the same time, Iran reportedly rejected proposals requiring the dismantling of its nuclear facilities, while offering only limited concessions involving its stockpile of enriched uranium.
Iranian officials later disputed some details surrounding the reported negotiations.

Limited Energy Flows Continue Through Hormuz

Although the Strait of Hormuz remains heavily restricted, a small number of shipments have managed to transit the region.
Saudi Arabia and the United Arab Emirates have redirected some crude exports through alternative routes while also moving limited tanker traffic through Hormuz itself.
Qatar recently succeeded in exporting its first LNG shipment through the strait since the war began, offering a modest sign that some trade activity remains possible under tightly controlled conditions.
Still, total shipping flows remain only a fraction of prewar levels.
Saudi energy giant Saudi Aramco warned that global energy markets may not fully normalize until 2027 if shipping disruptions continue for several more weeks.

Wall Street Braces for Extended Disruptions

Financial markets are increasingly preparing for a prolonged energy crisis tied to the ongoing Hormuz disruptions.
A recent survey by Goldman Sachs Group Inc. showed that many market participants now expect shipping disruptions in the strait to continue beyond June.
Trading activity also reflected heightened volatility, with Brent crude futures experiencing unusually heavy early-session volume as traders rushed to adjust positions.
The market structure for Brent crude widened further into backwardation, a bullish signal that typically points to immediate supply tightness.

Geopolitical Risks Remain Elevated

Israeli Prime Minister Benjamin Netanyahu warned over the weekend that the war with Iran is “not over,” adding that more action may be required to eliminate Tehran’s nuclear capabilities.
Meanwhile, President Trump is expected to discuss Iran during upcoming talks with Chinese President Xi Jinping, including concerns over Chinese support and economic ties with Tehran.
With ceasefire negotiations stalled and military incidents continuing across the Gulf, energy markets remain highly sensitive to any developments that could further disrupt global oil and gas supplies.