Oil prices surged on Thursday, with Brent crude surpassing $104 a barrel, amid growing skepticism about de-escalation in the ongoing Iran-US conflict. The increase follows Iran’s firm denial of any negotiations with the United States, dampening hopes for a quick resolution.
Futures for Brent crude, the global benchmark, climbed nearly 2% on Thursday after Tehran dismissed reports of direct talks with the US administration under President Donald Trump. This comes after oil prices had eased slightly the previous day following reports that Trump had shared a 15-point plan aimed at ending the conflict with Iran.
Asian stock markets responded negatively, with Japan’s Nikkei 225, South Korea’s KOSPI, and Hong Kong’s Hang Seng Index all opening lower.
Iranian Foreign Minister Abbas Araghchi stated in a televised interview on Wednesday that Tehran was not engaged in direct negotiations with Washington and has “no intention of negotiating for now.” Meanwhile, White House Press Secretary Karoline Leavitt warned that Iran would face stronger measures if it refused to accept military defeat.
Iran’s actions—particularly its effective closure of the Strait of Hormuz, a vital route for 20% of global oil supplies, along with attacks on Middle Eastern energy facilities—have contributed to a sharp rise in global energy prices. Since the US and Israel launched strikes against Iran on February 28, oil prices have increased by over 40%, prompting many countries to implement fuel rationing and energy conservation measures.
Market analysts predict prices will continue to rise until shipping through the Strait of Hormuz is fully restored. Despite efforts by nations to increase supply through emergency stockpiles coordinated with the International Energy Agency, shipping levels have plummeted. Maritime data shows that only four vessels transited the waterway on Tuesday, a stark decline from the average of 120 daily transits before the conflict began, according to maritime intelligence firm Windward.