Oil prices jump 4.6% on renewed US–Iran conflict fears

Brent crude oil prices rose by 4.6 per cent on May 26, climbing back above $100 per barrel as tensions in the Middle East and uncertainty over US–Iran talks unsettled markets.

The benchmark reached $100.6 at the time of writing, according to trading data, recovering after briefly falling to around $95 earlier in the week.

The increase followed comments by Donald Trump suggesting progress in negotiations with Iran. However, US strikes that followed and Tehran’s pledge not to “leave any wrongdoing unanswered” quickly dampened hopes of easing tensions.

Reuters reported that a lasting agreement to end the conflict and reopen the Strait of Hormuz for oil shipments remains uncertain, with US Secretary of State Marco Rubio saying talks could take several days.

Ole Hansen of Saxo Bank said any deal would not immediately restore oil supply to earlier levels, adding that a shortage could continue for several months.

By Aghakazim Guliyev