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Iran Conflict 2026
12MAY

Brent settles $105.30 with no fresh seizure

3 min read
09:32UTC

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
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Different Perspectives
International human rights monitors (NetBlocks, IHR, Hengaw)
International human rights monitors (NetBlocks, IHR, Hengaw)
NetBlocks recorded 1,704 cumulative hours of near-total internet blackout for roughly 90 million Iranians on Day 74, while IHR documented ongoing executions under emergency provisions. These organisations are the only active monitoring windows into a civilian population cut off from the global internet for 71 consecutive days.
UK / France coalition
UK / France coalition
The Royal Navy confirmed HMS Dragon's Hormuz deployment on its own website on 11 May, converting a press-reported presence into declared force posture; UK and French defence ministers hosted a coalition meeting the same day. Britain and France are now the only named contributors to a Hormuz escort mission all five allies Trump originally asked had declined.
Saudi Aramco / Gulf producers
Saudi Aramco / Gulf producers
Saudi Aramco CEO Amin Nasser warned on 11 May that a Hormuz closure could remove 100 million barrels of weekly supply from global markets (roughly 15 million barrels per day for a week), a figure that dwarfs any OPEC+ swing capacity. The warning functions as both a price-floor signal and a public pressure on Washington to protect transit.
Beijing / Chinese Government
Beijing / Chinese Government
China has not publicly acknowledged the four Hong Kong-registered entities designated on 11 May or extended MOFCOM's Blocking Rules cover to HK-domiciled firms. Xi Jinping hosts Trump on 14–15 May having already de-risked state-bank balance sheets via NFRA's quiet loan halt, entering the summit partially compliant before any negotiation.
Tehran / Iranian Government
Tehran / Iranian Government
Foreign Minister Araghchi described Iran's 10-point counter-proposal as 'reasonable and responsible' via spokesman Baqaei on 11 May, and widened the mediator pool by meeting Turkish, Egyptian, and Dutch counterparts in a single day. Tehran is buying procedural runway while Trump's verbal rejection went unmatched by any written US counter.
Trump White House
Trump White House
Trump called the ceasefire 'on massive life support' and dismissed Iran's 10-point counter-proposal as 'a piece of garbage' on 11 May, while departing for Beijing two days later with no signed Iran instrument to show Congress. The verbal maximum and the paper void coexist: the administration is running a legal pressure campaign through Treasury while the president free-lances the rhetoric.