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Iran Conflict 2026
2MAR

Brent recovers to $93.91 on deal delay

3 min read
08:00UTC

Brent crude opened Monday at $93.91, up 3.06%, holding above last week's floor and keeping its forward curve above spot, the market's verdict that the unsigned weekend was a delay rather than a rupture.

ConflictAssessed
Key takeaway

Brent's forward curve sits above spot, pricing sub-$100 oil as a temporary deal premium, not a new floor.

Brent Crude opened Monday 1 June at $93.91, up 3.06% from Friday's $91.12 close 1. Brent is the global oil benchmark against which most of the world's crude is priced, and its level encodes how seriously traders rate the risk that the strait of Hormuz closes. Monday's move recovered part of last week's losses without breaking either way: no collapse toward $90, no deal-failure surge toward $110.

The price held above the $92.05 floor set on 29 May , the bottom of a sell-off that ranked as Brent's worst monthly fall since the Covid shock. Holding that floor tells you the market read the unsigned weekend as a delay, not a rupture, the same reading that pulled Brent below $100 in late May as diplomatic optimism built .

The signal worth reading sits in the shape of the curve, not the spot price. The 12-month forward near $105 still sits above spot, which means traders are paying more for oil a year out than for oil today. That inversion prices sub-$100 Brent as a temporary deal premium, the discount the market awards while a settlement looks likely, rather than a new structural level. If the talks collapse, the premium unwinds and spot chases the forward upward; for now the curve says the deal is late, not dead.

Deep Analysis

In plain English

Oil traders pushed Brent crude to $93.91 a barrel on 1 June, a 3% jump from Friday's close. Oil had been falling for weeks as traders hoped a US-Iran deal would reopen the Strait of Hormuz to shipping, but no deal arrived over the weekend. Futures contracts for oil a year from now price at around $105, roughly $11 above today's spot price. That $11 gap represents the market's estimate of the economic cost of the current blockade: traders are still pricing in an eventual reopening.

What could happen next?
  • Opportunity

    The $11-13 spread between spot and 12-month forward Brent means any credible deal announcement would produce an immediate oil-price fall that delivers significant household cost relief across Europe and Asia.

  • Risk

    If the 2 June House vote on SJ Res 59 passes, oil traders may interpret it as signalling an imminent end to the US blockade regardless of the Iran deal status, triggering a Brent sell-off that would undercut US leverage in the MOU negotiations.

First Reported In

Update #114 · Two parliaments, one war neither can govern

Trading Economics· 1 Jun 2026
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Different Perspectives
Oil markets / Lloyd's of London
Oil markets / Lloyd's of London
Brent fell to near $87.33 on 80 per cent deal-probability pricing, but Lloyd's has not de-listed Hormuz from its war-risk register and shipping diversions continue at 139 vessels. Insurance markets are lagging futures: physical risk remains while financial markets have spent the good news before the paper exists.
India
India
Modi is expected to raise the deaths of three Indian sailors in the 11 June CENTCOM strike on the MT Settebello with Trump at G7 sidelines, the first non-party leader to put the blockade's human cost into a formal bilateral. New Delhi is also a major Iranian oil buyer whose import volumes the sanctions-relief terms will govern.
Israel (Netanyahu)
Israel (Netanyahu)
Netanyahu stated Israel is not party to the deal on 12 June; Defence Minister Katz ruled out the Lebanon withdrawal Iran's draft demands, inserting a third blocker the US-Iran negotiating channel cannot resolve. Israel's position tethers Hormuz reopening to a Lebanon settlement Washington has not brokered.
Pakistan (mediator, Sharif/Naqvi)
Pakistan (mediator, Sharif/Naqvi)
Sharif declared a final agreed text on 12 June before either principal confirmed it, running two Tehran visits in under a week without securing a written IRGC or Khamenei response. Islamabad's incentive to claim a diplomatic win outpaces its standing to deliver either capital's signature.
Iran foreign ministry (Araghchi)
Iran foreign ministry (Araghchi)
Araghchi declared digital signing within days while setting dilute-in-Iran as a non-negotiable red line on the 440.9 kg HEU stockpile, a standing Tehran position he cannot override without authorisation from Khamenei, reachable only by courier. The FM track is sprinting to close before the IRGC reasserts control.
Trump administration / CENTCOM
Trump administration / CENTCOM
Vance called the deal still TBD on 12 June while CENTCOM downed Iranian drones over Hormuz for a second consecutive night and the White House register stayed blank. Washington holds the ship-out position on HEU and has not signed an Iran instrument in over 100 days of conflict.