Iran war: Oil surges as Middle East supply concerns grip markets
Brent futures are trading close to $110/bbl as the US-Iran war rages on and Yemen’s Houthi militants expand control along the Red Sea coast.
IMAGE: Flags of the US and Iran. Getty Images
Washington has claimed that Tehran is eager to return to the negotiating table, while Iranian officials have flatly dismissed the overtures.
“The failing Nation of Iran wants to make a deal, quickly and badly. I will determine whether or not the U.S.A. will choose to engage - The concept of which we are open to,” US President Donald Trump said on social media platform Truth Social earlier this week.
Trump’s assertions were swiftly rejected by Iran’s Supreme National Security Council’s secretary Mohsen Rezaei, who dismissed the claim and warned against getting “distracted by the U.S. president’s mixed signals.”
“Damage control won’t stop what’s coming. No talks until Iran’s conditions are met. Period!” Rezaei said.
This widening war of words between the US and Iran – doing little to cool the global oil market – has continued to push Brent crude’s price higher amid mounting supply chaos.
As diplomatic prospects collapse, hopes for an Iran-Oman deal to control the Strait of Hormuz have also evaporated, after the high-stakes meeting in Muscat was postponed indefinitely.
As of Monday, only eight vessels attempted to transit the Strait of Hormuz – six inbound, two outbound – Windward reported, as vessel traffic remains well below the pre-war average of 140 daily transits.
By Aparupa Mazumder
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