Crude Oil Prices Surge 11% as Trump Rules Out Iran Deal Without Conditional Surrender, Brent Tops $90

Crude Oil Prices Surge Amid Escalating US-Iran Conflict

On 6 March, crude oil prices experienced a significant jump due to concerns that the ongoing US-Iran conflict may last longer than expected, stoking global inflation. Brent crude futures rose 7.5% to reach $91.84 per barrel, surpassing $90 per barrel for the first time since April 2024. West Texas Intermediate (WTI) crude advanced 11% to $89.62 per barrel, last seen at these levels in October.

With today's surge, both Brent and WTI have strengthened by 24.55% and 32%, respectively, reviving fears among investors that higher prices will increase consumer prices across markets and may prompt central banks to hold interest rates for longer.

The recent escalation in tensions follows US President Donald Trump's demand for "unconditional surrender" from Iran. Trump stated that after such a development, the United States and its allies would help rebuild Iran and restore its economy.

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Key Market Movements:

• Brent crude futures: +7.5% to $91.84 per barrel
• West Texas Intermediate (WTI) crude: +11% to $89.62 per barrel
• Brent price increase since late December: 52%
• WTI price increase since late December: 32%

The ongoing conflict has led to the closure of the Strait of Hormuz, disrupting energy flows to global markets and prompting producers to begin shutting in output. This has resulted in a significant rally in oil prices, with Brent showing a similar price increase to that seen between November 2021 and March 2022, when it jumped 68.5% in just five months.