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Iran Conflict 2026
8JUN

Brent settles $105.33, war's biggest week

3 min read
09:58UTC

Brent crude closed Saturday 25 April at $105.33 per barrel, up roughly 16% on the week despite an indefinite ceasefire announced five days earlier.

ConflictDeveloping
Key takeaway

Brent's biggest week of the war registers a market that has stopped pricing the ceasefire and begun pricing the carriers.

Brent Crude settled at $105.33 per barrel on Saturday 25 April, the largest weekly gain (roughly 16%) since the war began and approximately 57% above the pre-war baseline of about $67⁠1. The settlement came five days after the indefinite ceasefire announcement that briefly knocked the contract back. Brent is the global crude benchmark used to price two-thirds of the world's traded oil; a move of this scale on a ceasefire week is a market correction against the underlying assumption.

Brent has now ignored two pieces of de-escalation paper inside a fortnight: the indefinite-ceasefire announcement and the Lebanon ceasefire extension on 23 April. Traders are pricing the inverse of the diplomatic track; the carrier concentration in CENTCOM AOR, the IRGC's verbal escalation and the AIS-blank Hormuz transits are now the dominant inputs.

Insurance, not navies, sets the structural floor under the price. With the major Protection and Indemnity clubs out of Iranian waters and war-risk premiums into double-digit millions per trip, the cost of moving a barrel through the strait has stepped up regardless of whether kinetic events occur on a given day. For European and UK forecourt prices, $105 Brent through the bank-holiday window keeps pump prices elevated; for Indian, Korean and Japanese refiners pricing forward cargoes, the unpriceable insurance leg is now the binding cost driver.

Deep Analysis

In plain English

Oil prices track closely with what is happening in the strait of Hormuz because roughly one-fifth of all the oil the world uses each day normally passes through that narrow waterway. When it is effectively closed, oil companies have to find other routes or buy from different suppliers, which costs more. On top of that, the shipping companies that carry oil have to pay enormous insurance premiums just to attempt a transit, adding further costs. The price at the petrol station reflects these extra costs within a few weeks. At $105 a barrel, you are paying roughly 20-25% more to fill your car than before the conflict started in late February.

What could happen next?
  • Meaning

    At $105/bbl sustained for three months, **UK** and **EU** inflation forecasts for mid-2026 will need upward revision of roughly 0.4-0.7 percentage points, complicating central bank rate-setting ahead of summer monetary policy meetings.

    Short term · Assessed
  • Meaning

    The 16% weekly gain sets a new psychological floor for oil-market participants: each subsequent failed diplomatic round is now priced as a new price plateau rather than a temporary spike.

    Short term · Assessed
  • Meaning

    Sovereign wealth funds in Gulf states whose budget breakeven sits at $87-95/bbl (Saudi Arabia and UAE) are now running significant surpluses that give them more patience than Western consumers to wait for a negotiated resolution.

    Short term · Assessed
First Reported In

Update #80 · Three carriers, zero instruments

Angle360· 26 Apr 2026
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Different Perspectives
Wang Yi
Wang Yi
China's foreign minister and Djibouti's issued a joint communique on 21 October saying the war should not reach the Horn of Africa and stressing free navigation through Bab al-Mandeb. The text names neither Iran nor the Houthis, and Djibouti hosts China's only overseas military base, opposite the Yemeni coast.
Ministry of External Affairs
Ministry of External Affairs
India's foreign ministry called the attacks on Saudi civilian and energy sites "unacceptable" on 22 October and said they must stop at once. An Indian died at Dammam, Indians were injured there and at Shaybah, and about 4,000 Umrah pilgrims remain stranded by one MP's count.
Iraq
Iraq
Iraq closed the al-Sheeb crossing with Iran to travellers and trucks from 21 October and said other crossings would close gradually. Unlike September's closure, which ended on a staged timetable, this one has none, and Iran's interior ministry said it received no notice.
Abdel Fattah el-Sisi
Abdel Fattah el-Sisi
Egypt's president said on 21 October that Cairo's support would "defend Saudi territory, and does not include an attack on Yemen". Araghchi warned that Egyptian involvement would further complicate the situation, and Cairo's limit matches the one Ankara set on 8 October against attacking another state's soil.
UK Ministry of Defence
UK Ministry of Defence
The MoD said on 20 October that RAF Typhoons over Saudi Arabia will not strike the Houthis, but extended tanker support to Saudi operations including against Houthi targets in Yemen. The tanker line sets no limit on strikes, so British aircraft may now refuel Saudi jets on bombing runs.
Turkey
Turkey
Ankara sent the Mecca Joint Defence Agreement to parliament around 20 October, and its published text treats an attack on one party as an attack on all. Article 16 brings it into force only on the last ratification, so the 5 October invocation in Riyadh could not yet bind Turkey.

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.