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Russia-Ukraine War 2026
16APR

Brent tops $100 then gives it back

3 min read
14:27UTC

Brent crude settled at $94.98 on 1 June, spiked to $101.36 on the morning of 3 June, then fell to $96.97 by 4 June, a round-trip that priced neither a signed deal nor a full blow-up.

ConflictDeveloping
Key takeaway

Brent swung above $100 and back inside a day; insurers will not move Hormuz war-risk without an official document.

Brent Crude, the benchmark that prices roughly two-thirds of internationally traded oil, settled at $94.98 on 1 June, spiked to $101.36 on the morning of 3 June, then fell to $96.97 by 4 June⁠1. The 3 June print was the first move back above $100 since 25 May.

The round-trip says traders are pricing neither a signed deal nor a full blow-up. The market has settled into a $95 to $102 band that holds the conflict premium without betting on its resolution. Each fresh headline, a presidential phone call or a Senate hearing, moves the price for a session before it retraces, because nothing has changed the underlying supply risk through the strait of Hormuz.

Lloyd's of London shows why. The insurance market's Joint War Committee designates high-risk maritime zones, and to de-list Hormuz it requires a UN Security Council resolution or a government certification letter, not testimony or optimism. It has not repriced its Hormuz war-risk cover at all. Until an actual instrument lands, the insurers hold the premium steady while the futures market swings around it.

Deep Analysis

In plain English

Brent Crude jumped from about $95 to over $101 a barrel on 3 June 2026, its highest since 25 May, after Iran struck a civilian airport and Gulf tension spiked. Within about 24 hours it fell back to just under $97, roughly where it had started. This kind of quick spike and retreat shows that oil traders are not betting on an all-out war or a complete deal: they are pricing a situation that keeps going at roughly the same level of tension without a major change either way. Meanwhile, the companies that actually insure ships to sail through the strait of Hormuz have not changed their prices at all ; they still charge roughly $10 to 14 million extra per voyage, and that price only changes when there is an official government or UN declaration, not when the news is bad.

First Reported In

Update #117 · Iran's drone finds Kuwait's arrivals hall

Fortune· 4 Jun 2026
Read original →
Causes and effects
This Event
Brent tops $100 then gives it back
Lloyd's of London needs official certification rather than headlines to reprice Hormuz war-risk cover, and it has not moved.
Different Perspectives
Bulgarian government
Bulgarian government
Bulgaria's Prime Minister, Rumen Radev, said the sinking of HS Dignity "benefits the Russian Federation" while saying Bulgaria lacked solid evidence to accuse anyone, and Defence Minister Dimitar Stoyanov asked NATO for air defence on 16 October. The request comes from a government that stopped state military aid to Ukraine in June.
Radoslaw Sikorski
Radoslaw Sikorski
Poland's foreign minister challenged Elon Musk on X after SpaceX capped Ukraine's Starshield terminals on 14 October. Poland pays about $50m a year for Ukraine's Starlink subscriptions, so Warsaw speaks as the paying customer as well as the ally.
Andy Burnham
Andy Burnham
Burnham fast-tracked £10m of a £45m air-defence missile delivery when Zelenskyy visited London on 14 October, and his ministers are lobbying allies to ban maritime services for Russian liquefied natural gas. The measure targets insurers and shipowners, many of them in London, rather than the gas itself.
Ministry of External Affairs (India)
Ministry of External Affairs (India)
India's foreign ministry said after the 16 September House vote that New Delhi would take all necessary measures to protect its trade.
European Council
European Council
EU leaders on 15-16 October rejected a US idea to hand Washington the roughly €200bn of frozen Russian assets held in Europe, and Kaja Kallas said the decision belongs to Europeans. The same summit put off a decision on financing Ukraine, saying leaders "will revert to the issue in a timely manner".
Donald Trump
Donald Trump
Trump signed the 16 October order that sets the Graham Act's duties and waives them under section 115(a), with a certification sent to Congress. He says the United States has not stopped sharing intelligence with Ukraine, and on 11 October he said both sides had agreed to halt attacks on energy infrastructure.

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