Crude oil prices rallied strongly on Monday as geopolitical tensions in the Middle East escalated following the failure of peace negotiations between the United States and Iran. Concerns over prolonged disruption to oil flows through the Strait of Hormuz pushed both Brent crude and WTI crude futures sharply higher.
Energy markets remain volatile as traders closely monitor diplomatic developments, shipping activity in the Gulf region, and the potential impact on global oil supplies.
Brent crude futures for July delivery climbed US$3.59, or 3.54%, to trade at US$104.88 per barrel. During the session, Brent touched an intraday high of US$105.50.
Meanwhile, US West Texas Intermediate (WTI) crude futures for June delivery surged US$3.77, or 3.95%, to US$99.19 per barrel, after hitting a session high of US$99.89.
Oil prices moved sharply higher after hopes for a quick resolution to the ongoing US-Iran conflict faded over the weekend.
According to reports, Iran rejected a peace proposal drafted by Washington, prompting renewed fears that tensions in the region could continue for an extended period. US President Donald Trump reportedly described Iran’s response to the proposal as “unacceptable”.
The disagreement has raised concerns that oil transit through the Strait of Hormuz may remain restricted, keeping global energy supplies under pressure.
The Strait of Hormuz is one of the world’s most critical shipping routes for crude oil exports, and any prolonged disruption could significantly impact global supply chains and energy prices.
Investor attention is now turning towards President Trump’s scheduled visit to Beijing later this week, where discussions regarding Iran are expected to take place with Chinese President Xi Jinping.
Market participants are hopeful that China could use its diplomatic influence to encourage Iran towards a broader ceasefire agreement and help restore stability in the region.
Analysts believe the outcome of these discussions could play a major role in determining the near-term direction of crude oil prices.
Concerns over tightening global supply conditions continue to support the rally in crude oil prices.
As per news reports, Saudi Aramco Chief Executive Amin Nasser stated that the world has lost nearly one billion barrels of oil supply over the past two months. He also warned that energy markets may take considerable time to stabilise even if normal shipping activity resumes.
Meanwhile, shipping data revealed that additional oil tankers passed through the Strait of Hormuz with tracking systems switched off in an attempt to avoid potential attacks, highlighting growing security risks in the region.
The ongoing uncertainty surrounding Middle East oil exports has added further upward pressure on global crude benchmarks.
WTI crude futures traded within a daily range of US$97.68 to US$99.89, while Brent crude futures moved between US$103.82 and US$105.50 during Monday’s session.
Over the past 52 weeks, WTI crude has traded between US$54.98 and US$117.63 per barrel. Brent crude has moved within a broader range of US$58.72 to US$126.41.
Crude oil prices remain highly sensitive to geopolitical developments as tensions between the United States and Iran continue to disrupt global energy markets. With peace negotiations stalled and shipping risks in the Strait of Hormuz persisting, traders are likely to remain cautious in the near term.
Market focus will now shift to diplomatic discussions between the United States and China, which could influence the future course of the conflict and determine whether energy markets stabilise or face further volatility.
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Published on: May 11, 2026, 8:22 AM IST
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