Iran-US Conflict Continues to Fuel Global Oil Price Surge

Oil prices surged by 3% on Tuesday as tensions between the US and Iran remained high, with efforts to end the conflict stalled. The US has maintained its blockade of Iranian ports, which is causing significant disruptions to global oil supplies.

The Strait of Hormuz, a critical waterway through which about 20% of global oil and gas supplies pass, remains largely shut. This has led to an increase in oil prices, with Brent crude futures for June climbing $3.28 to $111.51 a barrel. The contract is up for a seventh straight day.

US President Donald Trump is unhappy with the latest Iranian proposal to end the conflict, which avoids addressing the nuclear program until hostilities cease and Gulf shipping disputes are resolved. This has left the conflict deadlocked, with no clear path to reopening the Strait of Hormuz.

Rystad Energy analyst Jorge Leon noted that oil prices above $110 per barrel reflect a market rapidly repricing geopolitical risk. With peace talks stalled, traders are factoring in a prolonged disruption to global supply.