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Iran Conflict 2026
10APR

Brent settles $105.30 with no fresh seizure

3 min read
08:05UTC

Brent crude settled at $105.30 on 25 April with intraday prints above $106 and a weekly gain of roughly 18%. The talks collapse alone is now the bullish driver, not fresh kinetics.

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Key takeaway

Brent at $105 has been repriced as the baseline; future incidents push from there, not from $67.

Brent crude settled at $105.30 on 25 April with intraday prints above $106 and a weekly gain of roughly 18% per The National 1. This is the second consecutive session above $105, 57% above the $67.41 pre-war baseline and a continuation from the $105.73 close on 24 April . No new IRGC seizure occurred on 25 April, and the dark-shipping picture from the Larak-Qeshm carve-out was unchanged.

The price moved on the absence of a diplomatic resolution rather than on a fresh provocation. That is a structural shift: the market has stopped treating each diplomatic failure as a temporary setback and is pricing the absence of a resolution track as the default scenario. The repricing matters because future seizures will now push the price from $105 rather than from $67, amplifying the economic shock of any tactical escalation. UK and European pump prices follow Brent with a one-to-two-week lag.

The options curve confirms the shift. With the baseline reset, any de-escalation announcement becomes disproportionately bearish rather than merely corrective, which makes the political incentive structure for Tehran and Washington asymmetric: Iran loses revenue floor on a deal, and US consumer pump prices ease only after a deal is concrete enough to clear forwards. Brent at $105 is the new floor, not a ceiling.

Deep Analysis

In plain English

The price of oil affects almost everything: petrol at the pump, heating bills, the cost of goods moved by truck or ship. The benchmark price for much of the world's oil is called 'Brent crude', named after a North Sea oil field. Before the Iran war began, Brent was around $67 a barrel. On 25 April it closed at $105.30. That is a rise of nearly 57%, and it happened in under two months. Oil markets usually react strongly to specific events (a ship seized, a factory bombed). What is significant about Saturday's price is that nothing new happened: no IRGC boarding, no strike, no military escalation. The price stayed above $105 purely because traders stopped believing the war would end soon. When the diplomacy collapses and traders update their expectations, prices move even without a physical event.

Deep Analysis
Root Causes

Each Islamabad channel failure narrows the oil market's probability distribution around a near-term diplomatic resolution. When Islamabad 3 collapsed via Trump's Truth Social post, traders priced the event harder than a formal diplomatic postponement would have warranted, because a social-media cancellation carries no institutional machinery for reversal.

The ceasefire is nominally in force, but CENTCOM's interdiction count reached 33 on 25 April while the naval blockade continues. Traders have concluded that a nominal ceasefire does not translate to resumed Hormuz commercial transit. Until a deal explicitly addresses the blockade, the $38/bbl structural premium over the pre-war baseline persists regardless of individual daily incident counts.

What could happen next?
  • Consequence

    European and Asian central banks running quarterly inflation assessments in May will incorporate $105+ Brent into their forecasts, likely deferring planned interest rate cuts by one to two quarters.

  • Risk

    Goldman Sachs's $120 Q3 severe scenario becomes the base case rather than the tail risk if both the Islamabad diplomatic track and the AUMF congressional track fail before 1 May.

First Reported In

Update #79 · Islamabad 3 collapses; Witkoff grounded, talks stall

Al Jazeera· 25 Apr 2026
Read original
Different Perspectives
Lloyd's of London
Lloyd's of London
The Joint War Committee left Hormuz war-risk premiums at $10-14 million per voyage on 25 May, declining to move on Brent's 5% fall. The JWC's protocol requires a UN Security Council resolution or bilateral government certification letter before de-listing, and neither has arrived: a verbal understanding does not satisfy the formal condition the reinsurance market's treaty terms require.
Gulf Arab producers
Gulf Arab producers
Saudi Arabia and UAE depend on Hormuz for their own crude exports; Aramco CEO Nasser has warned no oil market recovery arrives until 2027 if the blockade continues past mid-June. Monday's $98.96 Brent settlement shortens nothing for Gulf producers without a signed instrument and a Pentagon mine-clearance timeline that runs up to six months post-ceasefire.
Qatar
Qatar
Qatar holds $12bn of frozen Iranian assets at the centre of the sequencing dispute but cannot release them without explicit US Treasury authorisation, given the original freeze was a US instrument. As the asset-holding state, Qatar's leverage is real but passive: it is the escrow holder, not the decision-maker, and any resolution requires US Treasury sign-off that Trump has withheld.
Pakistan
Pakistan
With both Prime Minister Sharif and army chief Munir simultaneously in Beijing on 25 May, Pakistan has for the first time consolidated its civilian and military mediation tracks under China's roof. Munir's direct Tehran-to-Beijing flight signals that the security and financial threads of the sequencing problem are now being worked in parallel rather than sequentially.
China
China
Beijing hosted Pakistan's principal mediators and Iran's China envoy Ghalibaf simultaneously on 25 May while its banking regulator capped new state-bank lending to five sanctioned refiners. China is simultaneously the most credible third-party underwriter of the $12bn sequencing and the state whose institutions face live OFAC secondary-sanctions exposure if the deadlock persists through GL V's expiry.
United States
United States
Trump posted on 24 May that the blockade holds until a deal is certified and signed, ruling out the informal MOU structure both sides had been building. The 'certified, and signed' condition is the first operational bar Trump has attached in 87 days, but it arrived without an executive instrument, maintaining the gap between posted ultimatum and signed US policy.