Oil Surges Past $104 as Netanyahu and Trump Inflame Iran War Fears

CNBC reported Monday that Iran war oil prices surged sharply after Israeli Prime Minister Benjamin Netanyahu signaled the conflict with Iran remained unresolved, rattling energy markets and reigniting supply-chain anxiety across global crude benchmarks.

Oil Benchmarks Post Steep Gains at the Open

Brent crude futures for July delivery climbed more than 3% to $104.49 per barrel in early trading. U.S. West Texas Intermediate June contracts rose a matching 3.08%, settling near $95.42 per barrel. The moves represented some of the sharpest single-session gains in recent weeks for both benchmarks.

Also Read: Fed Holds Rates Steady as Tariff Uncertainty Clouds Outlook

Netanyahu’s CBS Interview Rattles Markets

Speaking ahead of a CBS interview airing Sunday, Netanyahu laid out a sweeping list of unresolved demands. He cited the continued presence of enriched uranium inside Iran, active enrichment facilities, Iranian-backed proxy networks, and an ongoing ballistic missile program. When pressed on how nuclear material might be removed, Netanyahu replied that forces would simply enter and extract it. Separately, President Donald Trump publicly dismissed Iran’s latest counteroffer, calling it wholly unacceptable in a statement posted online. The dual declarations effectively collapsed expectations of a near-term diplomatic breakthrough and sent traders scrambling back into risk premiums.

A Market Already Walking a Tightrope

The Strait of Hormuz has sat at the center of this crisis for months. The waterway carries a significant share of the world’s seaborne crude, and Iran retains substantial leverage over whether and when it reopens fully. Analysts at Citi noted in a research report that crude markets have been partially insulated by elevated inventory levels, releases from strategic petroleum reserves, and softer demand from some developing economies. Even so, Citi maintained that price risks remain skewed to the upside. The bank’s base case assumes Iran agrees to a deal that restores Hormuz traffic by late May, but analysts flagged that a delayed or partial reopening was a serious possibility that would extend supply disruptions further into the summer.

What Traders Are Watching Next

Attention now turns to whether U.S. and Iranian negotiators can restart substantive talks. Any credible signal of progress would likely cap the current rally. Conversely, further inflammatory statements from either side could push Brent toward levels not seen since the early months of the conflict. Citi analysts warned that the timeline for resolution is fragile and that the market should not assume a clean resolution is imminent.

Read Next: Trump Tariff Pause Sends S&P 500 to Best Week of 2026