Oil prices rise following escalation in US-Iran tensions

Global oil prices rose on June 1, 2026, ending a week of declines following reports of a stalemate in peace negotiations between the United States and Iran. Tensions escalated over the weekend due to mutual military attacks and the reported hardening of US negotiating terms, with President Donald Trump allegedly providing a new, stricter memorandum to Tehran. Market estimates for the price increases vary by source, with reports citing Brent crude reaching between $93.16 and $95.60 per barrel, and West Texas Intermediate (WTI) trading between $89.60 and $92.55 per barrel. The volatility stems from fears regarding the potential closure of the Strait of Hormuz and the Bab el-Mandeb strait, which are critical for global oil supply. Iran has reportedly paused contact with the US and threatened to close these maritime chokepoints. Previous expectations of a peace deal had driven prices down by more than 11% earlier in the week. Markets are currently responding to the uncertainty surrounding the future of the Middle East conflict and its impact on energy security.