Global oil prices surged on May 11. President Donald Trump rejected Iran’s latest proposal to end a 10-week conflict.
The diplomatic impasse prevents the reopening of the Strait of Hormuz. This critical energy channel remains largely closed, fueling concerns of a prolonged supply crunch.
Brent crude futures jumped over 3% to trade above $104 per barrel. Session highs for Brent exceeded $105.
U.S. West Texas Intermediate (WTI) crude climbed over 3% to near $99 per barrel.
The conflict has already removed significant amounts of oil and LNG from the market. Markets now face heightened risks of a major energy shock and increased inflation.