Oil rose as peace negotiations between the US and Iran stalled, with both sides using blockades of the vital Strait of Hormuz to try and gain leverage in a seven-week war that has upended global energy markets.
Oil prices surged by more than 7% back above $100 a barrel on Monday after US President Donald Trump ordered the blockading of Iranian ports following the failure of peace talks between Washington and Tehran.
Oil prices surged back above $100 a barrel in early Asian trade following the collapse of U.S.-Iran negotiations and Trump’s announcement that the U.S. would blockade the Strait of Hormuz. At the time of writing, West Texas Intermediate was trading at $105.30 per barrel, up 9.04%, while Brent had risen 8.55% to trade at $103.30. Both benchmarks remain roughly […]
Higher oil prices driven up by the conflict in the Middle East stand to push some of America’s biggest shale producers to start adding drilling rigs in the second half of this year and more than 100,000 bpd of increased output by 2027, according to Citigroup Inc.
Oil prices climbed sharply in early Asian trading on Thursday as the Middle East conflict continued to escalate and energy infrastructure was targeted across the Gulf.
Oil prices are poised to extend their recent gains as global markets open Monday, amid the third week of the U.S.-Israel conflict against Iran, which has put key oil infrastructure at risk and kept the Strait of Hormuz closed, creating the largest disruption to global oil supplies in decades.
Meyersson warned in the report that future talks will be difficult if negotiation positions remain the same, adding that “all parties have an interest in ending the fighting, but need to overcome the crux of nuclear enrichment in Iran, as well as its ballistic missile program, in order for a durable deal”.
The truce between the world’s two largest economies brought some temporary relief to commodity markets roiled by tariffs that dented the outlook for global economic growth in recent weeks. Oil watchers have slashed demand forecasts, and the trade war already was showing signs of reducing the volume of goods arriving in the US.
Brent crude has shed some $11 per barrel since the start of the year, most recently trading at around $64 per barrel. This is substantially lower than what Saudi Arabia needs to balance its budget in view of ambitious public spending programs. This would have to change, and soon, if prices stay this low. In the meantime, Aramco is signaling business as usual.
The contradiction is emblematic of where U.S. shale finds itself in 2025: stuck between political slogans and fiscal reality. On one hand, Trump wants “drill, baby, drill” to be more than just campaign nostalgia. Trump also wants consumers to see lower prices at the pump. Meanwhile, Wall Street wants dividends, not drilling binges.