Brent Crude Surges Toward $110 as Iran Tensions Tighten Global Supply

Brent crude futures rose 2.5% to $108.05 per barrel in early trading on Monday, extending a powerful bullish trend driven by escalating geopolitical instability. The price surge follows a period of intense volatility, with Brent rallying nearly 17% over the previous week. The market is reacting sharply to the breakdown of diplomatic efforts between the United States and Iran, which has heightened fears of prolonged instability in the Middle East. This diplomatic impasse has removed a key catalyst for price stabilization, leaving traders focused on physical supply risks. Supply concerns are currently centered on the Strait of Hormuz, where shipments remain constrained. As a primary artery for global oil transit, any disruption in this region creates immediate upward pressure on prices due to the lack of readily available alternatives for the volume of crude passing through the corridor. Market participants are now pricing in a sustained supply crunch. The combination of stalled diplomacy and physical shipping constraints suggests that oil prices may remain elevated in the short term, potentially impacting global inflation expectations and increasing operational costs across the energy sector.