The global oil price Iran conflict scenario pushed Brent crude above $105 as markets monitored energy supplies and developments around the Strait of Hormuz.

Brent crude rose above $105 a barrel on Thursday, adding pressure to global markets as diplomatic efforts between the United States and Iran showed little sign of a breakthrough.

Reuters reported that Brent futures were up more than 2% in morning trading, while U.S. crude also gained.

The move came as Iranian officials said Tehran was reviewing U.S. proposals for ending the conflict. Major disagreements remain, including over the U.S. naval blockade and the reopening of the Strait of Hormuz.

The waterway is a critical route for global energy shipments, making any disruption there particularly important for oil markets.

Oman’s navy also reported that a commercial vessel was struck in the Strait on Wednesday. One crew member was killed and more than 20 others were evacuated.

Investors are therefore watching both the diplomatic situation and developments affecting energy shipments.

If elevated oil prices persist, the effects could extend beyond energy markets into transportation, shipping and inflation.

Impact on Global Markets and Energy Supplies

As the oil price Iran situation continues to escalate, energy analysts warn that prolonged tensions could severely impact international trade routes. The Strait of Hormuz remains a central bottleneck for global tanker traffic, meaning any further disruptions will directly affect shipping costs, airline fuel prices, and broader consumer inflation worldwide.