Oil Prices Rally Above $100 as US-Iran Ceasefire Falters

Global oil benchmarks jumped sharply after President Trump warned that the tenuous ceasefire with Iran was on “life support.” Brent crude climbed about 2.5% to over $106 per barrel, while WTI topped $100 for the first time in weeks. Tensions centre on the Strait of Hormuz, a vital shipping route handling nearly 20% of the world’s oil and LNG supplies. Iran’s counterproposal demands sanctions relief, war-damage compensation and recognition of its sovereignty over the strait before lifting its blockade. The current crisis began when US and Israeli airstrikes hit Iranian military sites in February 2026. Iran then disrupted traffic through the strait, triggering the biggest supply shock since the 1970s. Saudi Aramco warns markets could stay volatile into next year if restrictions persist. Global equity markets also felt the strain. US futures pointed lower after recent record highs, while European and Asian indexes, led by South Korea’s KOSPI, slipped on renewed conflict fears.

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