Brent crude tops $110 as Trump’s Iran remarks keep markets on edge

Oil prices climbed sharply on Monday as traders struggled to decipher conflicting signals from Washington regarding the future of the Iran conflict. Brent crude futures rose 1.5% to $110.56 per barrel as of 1715 GMT, extending a period of extreme volatility. The gains came after President Trump described Iran’s response to a US ceasefire proposal as a “significant step,” while simultaneously warning that Washington had “many alternatives” and that, if it were his choice, he would “take the oil” from Iran—a remark widely interpreted as a threat to seize Iranian energy assets.

Iran rejects temporary ceasefire, demands permanent end

Despite Trump’s cautious optimism, Iran swiftly rejected any framework for a temporary ceasefire. According to state news agency IRNA, Tehran instead called for a permanent end to the war, with conditions including a halt to all regional hostilities, a protocol for safe navigation through the Strait of Hormuz, reconstruction assistance, and comprehensive sanctions relief. The wide gap between the two sides’ positions suggests that a diplomatic breakthrough remains distant, keeping oil markets on high alert.

Hormuz disruptions tighten global supply

Oil prices remain highly sensitive to developments around the Strait of Hormuz, through which approximately 20-25% of global oil trade passes. Disruptions to shipping in the strait have already tightened physical supply, and any further escalation—or failure to reach a durable ceasefire—could push prices significantly higher. For Türkiye, a net energy importer that relies heavily on crude and LNG transiting the Gulf, sustained high oil prices risk widening the current account deficit and fueling domestic inflation. Ankara continues to urge all parties to prioritize diplomacy and warns that prolonged market instability will harm emerging economies most.