Brent Crude Tops $103 as Trump Rejects Iran Peace Counteroffer

CNBC reported Monday that Brent crude oil prices crossed $103 per barrel after Israeli Prime Minister Benjamin Netanyahu declared the conflict with Iran unfinished. President Donald Trump simultaneously rejected Tehran’s counterproposal for ending hostilities, calling it “totally unacceptable” in a public statement.

Oil Markets React to Diplomatic Breakdown

International benchmark Brent crude futures climbed more than 2% to roughly $103.93 per barrel. U.S. West Texas Intermediate futures followed, advancing more than 2% to near $97.88. Both benchmarks have now risen approximately 40% since the U.S. and Israeli-led military campaign against Iran began on February 28.

Netanyahu, speaking in a CBS interview, outlined a list of unresolved demands. Those include removing enriched uranium from Iranian territory, dismantling enrichment sites, eliminating Iranian-backed proxy forces and halting ballistic missile development. He left little doubt that military options remain on the table.

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Strait of Hormuz Remains the Central Choke Point

Analysts at Citi cautioned that oil price risks continue to tilt upward. The bank noted that markets have been partially shielded by elevated inventories, strategic petroleum reserve releases and softer demand across developing economies. However, Iran retains meaningful leverage over the Strait of Hormuz, the critical shipping lane through which a large share of global oil flows.

Citi analysts wrote in their latest oil note that they expect Iran to eventually agree a deal reopening the Strait by late May. They also warned that delays or only partial reopening remain the more likely scenario, prolonging supply disruption for global markets.

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A Supply Shock With No Easy Parallel

Felipe Elink Schuurman, CEO and co-founder of Sparta Commodities, told CNBC that the current supply squeeze rivals the demand collapse seen during the 2020 pandemic. He estimated the lost supply now matches the roughly nine million barrels per day of demand that evaporated during the height of COVID-19 disruptions.

Schuurman warned the adjustment will be uneven across income groups. Wealthier nations will absorb higher refined product costs. Poorer economies face a potential humanitarian crisis. Europe risks a sustained economic contraction. The United States, he suggested, faces serious political fallout from prolonged energy price pain at the pump.

With no ceasefire framework in place and the Strait of Hormuz still functionally closed to normal traffic, traders are pricing in the possibility that $103 Brent may not represent the ceiling.

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