Crude Oil Prices Extend Gains for Third Consecutive Session Amid US-Iran Tensions

Global Oil Prices Rise for Third Consecutive Session Amid US-Iran Tensions

Oil prices continued their upward momentum on Monday, 18 May, as President Donald Trump intensified pressure on Iran to strike a deal and end the ongoing conflict in the region. The tensions have been driving up global oil prices for weeks, and the latest developments have pushed Brent crude futures to their highest level since 5 May.

Brent crude futures rose by $2.03, or 1.86%, to $111.29 per barrel, marking an intraday high of $112 earlier in the session. US West Texas Intermediate crude also advanced, increasing by $2.31, or 2.19%, to $107.73 a barrel, with a high of $108.70 touched on April 30. The front-month June contract is set to expire on Tuesday.

Crude oil prices on India's Multi Commodity Exchange (MCX) also followed a similar trend, surging by as much as 2.76% to ₹10,357 per barrel on Monday.

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The escalation of tensions in the Persian Gulf is largely behind the surge in crude oil prices. Since the US and Israel launched attacks on Iran in late February, oil prices have risen by more than 50%. The reduced flows through the Strait of Hormuz have disrupted supplies from Persian Gulf producers, adding to the supply concerns.

The situation was further complicated over the weekend when drone strikes triggered a fire at a nuclear facility in the United Arab Emirates, highlighting the fragile nature of the ceasefire. Iranian semi-official media reports indicate that both sides remain deeply divided, with Washington having offered "no tangible concessions" while attempting to obtain concessions that it failed to secure during the war.

President Trump's latest comments on social media have added to the pressure on Iran, warning that time is running out for the country to strike a deal. His administration has allowed a waiver permitting Russian crude sales to expire, despite India's request for an extension, further intensifying supply concerns.

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The standoff in the Persian Gulf has resulted in a fragile ceasefire, with both sides remaining deeply divided. Since the ceasefire took effect on April 8, Trump has repeatedly warned of restarting the bombing campaign that began on February 28. The situation remains precarious, with oil prices likely to remain volatile in the coming days.