Brent crude oil crosses $100: US-Iran tensions, blocked supply route push prices higher

Oil prices went up a lot and crossed $100 for one barrel. This happened because problems between the US and Iran are getting worse again. The main reason is that peace talks between the US and Iran have stopped for now, and there is no progress. A two-week break in fighting (ceasefire) is ending on Wednesday. People are worried that fighting may start again after that.

Now, the situation looks even more uncertain. Vice President JD Vance has called off his planned trip to Pakistan for talks, as reported by AP. A US official said his visit is on hold. At the same time, Iran has still not clearly agreed to join the next round of peace talks. Both countries have warned that if no deal is reached, fighting may start again soon.

Iran has also reportedly made a “final decision” not to attend the talks in Pakistan on Wednesday, according to Tasnim. This has increased fears in the global market and pushed oil prices higher again.


Because of this confusion, oil prices went up again after falling earlier. Brent crude oil price went up by about 5.35% (around $5) from its lowest point and reached $98.89 per barrel. US crude oil also went up by 5.56% (around $4.77) and reached $90.68 per barrel, as reported by Mint.

Tensions became worse after the US Navy seized an Iranian ship in the Strait of Hormuz. The Strait of Hormuz is very important because about 20% of the world’s oil and gas passes through it. Right now, shipping through this route is mostly stopped, which is a big concern for global supply.

Peace talks uncertain and tensions rising

US President Donald Trump said Iran has “no choice” but to come for talks in Pakistan. He also warned that the US is ready to restart bombing if no deal is reached. Trump said Vice President JD Vance may travel to Pakistan for negotiations,as noted by Mint. He also made it clear that he may not extend the ceasefire if no agreement is reached. He added that the Strait of Hormuz will stay blocked until a deal is finalised.

On the other side, Iran’s Parliament Speaker Mohammad Bagher Ghalibaf said Iran will not accept talks under threats. Iran’s foreign ministry spokesperson Esmail Baqaei said there are no plans yet for another round of talks. He also said the US does not seem serious about proper diplomacy.

Global impact and bigger issues

Because oil flow is almost stopped in the Strait of Hormuz, there is fear of a global energy shortage. The conflict is also linked to bigger issues like Iran’s nuclear program and Israel’s military actions in Lebanon. The first round of talks already happened on 12 April in Islamabad, with Pakistan acting as a mediator, as stated by Mint. These talks lasted about 21 hours but ended without any agreement.

Iran also protested after the US seized its cargo ship named Touska. Iran demanded the immediate release of the ship, its crew, and their families. Oil prices are rising mainly because of war fears, blocked supply routes, and failed peace talks between the US and Iran.

FAQs

Q1. Why did Brent crude oil prices go above $100?

Oil prices went up because US-Iran tensions increased, peace talks paused, and oil supply routes like the Strait of Hormuz got blocked.

Q2. How does the US-Iran conflict affect global oil prices?

The conflict reduces oil supply and creates fear in the market, which pushes oil prices higher worldwide.