Brent crude climbed above $115 per barrel as oil prices extended a multi-day rally, driven by new threats from President Donald Trump targeting Iran. The move came alongside reports that the U.S. is looking to expand its blockade of Iranian ports, adding fresh supply pressure to an already tight market. Iran is a significant oil producer, and any tightening of export restrictions cuts directly into global supply. A naval or diplomatic blockade of Iranian ports would limit how much crude Tehran can ship to buyers, most of whom are in Asia. That shrinks available supply without an immediate offset from other producers. Higher oil prices feed through quickly into fuel costs, inflation, and transport expenses for businesses and consumers worldwide. Emerging markets that import oil heavily, including India, face added pressure on their trade balance and currency when crude prices spike. Watch whether OPEC members or the U.S. signal any intention to raise output to offset the Iran-related supply risk, and whether Iran responds diplomatically or escalates further.
Qatar's foreign ministry said mediators including Qatar, Pakistan, and Oman have reached "very progressive stages" in efforts to end the US-Iran war, pushing Brent crude down more than four percent.
Qatar confirmed it is mediating between the US and Iran but said no direct talks are currently planned. The clarification follows conflicting statements from President Trump, who claimed talks are under way, and Tehran, which denied any dialogue is happening.
Saudi Aramco reported sharply higher second-quarter 2026 profits as the Iran war restricts global oil supply and pushes crude prices up. Other oil supermajors also posted outsized earnings, raising concerns about sustained fuel cost pressure for importing economies.
President Trump called current Iran negotiations the "last chance" to end five months of conflict, pushing oil prices higher. Tehran denied formal talks are taking place, raising the risk of a diplomatic breakdown with direct consequences for global energy markets.
