Brent crude oil has roared back above $100 per barrel, reversing Monday’s brutal 10% plunge amid a swirl of contradictory reports on potential U.S.-Iran talks that have traders on edge.
Tuesday’s Asian session delivered a robust lift, with Brent climbing 4% to $103.94 and West Texas Intermediate advancing 4.1% to $91.75, as Bloomberg figures confirm.
The shift came after U.S. President Donald Trump held off on strikes against Iranian energy facilities, pointing to “productive” discussions with Tehran as his rationale. Iran fired back swiftly, rejecting any contact and dismissing the narrative as a market-rigging stunt.
The drama unfolded against Saturday’s escalations, when Trump threatened to “obliterate” power plants unless Iran cleared the Strait of Hormuz—a critical artery carrying 21% of the world’s traded oil and vital liquefied natural gas, according to International Energy Agency data.
Iran’s retaliation pledge targeted regional assets, sending Brent to a fleeting $113 peak before Trump’s hint at a “COMPLETE AND TOTAL” deal via negotiations triggered the sell-off.
Since U.S.-Israeli strikes ignited the conflict on 28 February, Iran’s strait blockade has sent global fuel costs soaring over 25%, Reuters reports, hammering import-heavy economies.
Asian bourses, which tanked Monday on energy fears—China and Japan guzzle nearly 40% of Hormuz flows, per EIA stats—bounced back strongly Tuesday. Japan’s Nikkei 225 edged up 0.8%, Hong Kong’s Hang Seng gained 1.6%, and Seoul’s Kospi surged 2.2%.
OPEC+ allies like Russia have hiked output by 500,000 barrels daily to soften the blow, yet supply squeezes persist. Governments are mobilising too. The U.S. Treasury greenlit sanctioned Russian and Iranian cargoes at sea to flood markets. Europe tapped 60 million barrels from reserves (EU Commission), while India and Japan locked in Qatar LNG.
Goldman Sachs warns a prolonged shutdown could tack $20–$30 onto prices long-term, flirting with stagflation. For now, diplomatic murmurs offer a glimmer amid the chaos.