Brent crude oil has surged back above $110 per barrel, trading around $110–$112 in Monday’s session as geopolitical tensions in the Middle East intensify and supply risks deepen across key global routes.
The latest rally extends last week’s gains, with prices briefly touching $111–$112 intraday before fluctuating, as markets react to renewed instability around the Strait of Hormuz, a critical chokepoint for nearly a fifth of global oil flows.
At the centre of the surge are stalled US–Iran negotiations, which remain deadlocked amid escalating political rhetoric and continued uncertainty over a possible ceasefire. Analysts note that diplomatic talks have shown little progress, keeping risk premiums elevated in energy markets.
Additional pressure has come from reported disruptions and attacks on energy infrastructure in the Gulf region, including incidents near sensitive facilities, further heightening fears of supply interruptions.
Markets are also pricing in tightening global supply conditions after policy shifts affecting Russian crude exports, alongside broader uncertainty from recent high-level geopolitical talks that ended without any concrete agreement on stabilising maritime oil flows.
WTI crude also climbed in tandem, trading above $103 per barrel, reinforcing the broader oil market rally driven less by demand fundamentals and more by geopolitical risk.
Analysts say the current price movement reflects a “risk premium market”, where fear of disruption, rather than actual supply loss, is driving oil above the $110 threshold.
