Brent Crude Surpasses $105 as Iran-US Conflict Deadlock Persists

Brent crude futures advanced above the $105 per barrel threshold on Friday, marking the fifth straight day of gains. The price surge is directly linked to a persistent diplomatic impasse between the United States and Iran regarding the framework for talks to end their eight-week conflict. Market participants are increasingly pricing in the risks associated with the Strait of Hormuz, a critical chokepoint for global energy supplies. The lack of progress in negotiations has fueled concerns that the conflict could prolong supply instabilities, keeping a firm floor under crude prices. In the broader macro landscape, the US dollar is on track to record its first weekly gain of the current month. Meanwhile, the Treasury market saw a slight easing of yields, with the 10-year yield declining by one basis point to 4.32%. Despite the heightened geopolitical volatility, US equity markets are finding support in corporate fundamentals. Approximately 80% of firms within the US equity benchmark have outperformed first-quarter earnings estimates, suggesting that corporate profitability remains robust even as macro risks escalate. Traders are now balancing these strong earnings reports against the systemic risk of a prolonged Middle Eastern war. Until a diplomatic breakthrough is achieved, energy markets are expected to remain highly sensitive to any further escalations in the region.