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EMEA Oil Update: Brent Surges as Hopes for Iran Peace Deal Fade

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Brent crude futures surged on Monday after US President Donald Trump rejected an Iranian peace offer, renewing fears of a prolonged shutdown of the Strait of Hormuz.

The Brent futures contract gained about 3.9% to $105.24 per barrel. Murban futures closed at $98.82 on May 8 and was not trading as of the time of publishing this oil price update.

Analysts noted that the price spike signals a shift in market sentiment as traders abandon hope for a quick diplomatic fix in favor of a tighter global supply outlook.

Although optimism for an immediate 14-point peace memorandum is rapidly evaporating, investors are clinging to a glimmer of hope regarding a scheduled summit between President Trump and Chinese President Xi Jinping.

Analysts at ING noted that the market is now betting on China utilizing its significant economic leverage over Tehran to push for a workable agreement, though they cautioned that such mediation is "easier said than done."

This surge marks a sharp reversal from last week's performance, where both major benchmarks ended the period lower despite intermittent military skirmishes.

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