Brent Rises as US Reviews Iran Proposal

Brent crude futures rose above $109 per barrel on Tuesday, extending gains from the previous session as markets assessed the likelihood of a lasting ceasefire and the potential reopening of the Strait of Hormuz after Iran submitted a fresh proposal to the US. Tehran reportedly signaled via Pakistan that hostilities could cease if Washington lifted its naval blockade, agreed to a revised framework governing transit through Hormuz, and provided assurances against future military action. The US has expressed skepticism toward the proposal and is expected to respond with counteroffers in the coming days, with Iran’s nuclear program continuing to be a key point of contention. Now in its ninth week, the conflict has driven energy prices higher and disrupted supply in major markets, while the International Energy Agency has cautioned about an unprecedented supply shock alongside mounting risks of a demand slowdown.

Brent crude oil futures jumped over 2% to $108 per barrel on Monday as stalled efforts to restart peace talks over the Iran conflict kept the Strait of Hormuz nearly closed, extending supply disruptions that have shaken global markets. Reports indicate Tehran has proposed reopening the strait through US talks, though tensions remain high. Over the weekend President Trump canceled a planned visit by key envoys to Pakistan, which is mediating discussions, while Iran insisted it will not negotiate under pressure. A ceasefire has largely held since early April, yet mutual shipping blockades have reduced traffic through the strait to almost zero. Trump is set to meet his national security team to address the deadlock. The conflict, now in its ninth week, has pushed energy prices higher and caused shortages in key markets, with the International Energy Agency warning of an unprecedented supply shock and rising risks of demand slowdown.

Brent crude futures climbed above $107 per barrel in volatile trading on Monday, as the Strait of Hormuz remained effectively closed amid stalled US–Iran peace negotiations. US President Donald Trump instructed negotiators to suspend discussions, while Iranian President Masoud Pezeshkian reiterated that Tehran would not engage in “imposed negotiations under threats or blockade.” The Iran conflict has now entered its ninth week, triggering what the IEA has described as the largest energy supply shock on record, while intensifying inflationary pressures and weighing on the global growth outlook. Meanwhile, reports indicated that Iran had submitted a new proposal to the US aimed at reopening the Strait of Hormuz and easing tensions. The proposal, reportedly conveyed via Pakistani mediators, called for extending the ceasefire to allow progress toward a lasting settlement, while postponing nuclear talks until the US blockade of the strait is lifted.