Brent crude tops $92 as Rubio says Iran not serious on peace talks

Brent crude jumped more than 2% to hold above $92 a barrel Wednesday as the U.S.-Iran conflict entered its 11th consecutive night of American airstrikes, with Secretary of State Marco Rubio ruling out near-term prospects for a diplomatic resolution.

"There is no indication that Iran is serious about coming to the table," Rubio said Wednesday, according to a State Department readout. "We remain willing to negotiate an end to this crisis, but Tehran's actions suggest they are not prepared to do so."

Brent futures rose $1.84, or 2%, to $92.85 a barrel by 0630 GMT, the highest since June 11. U.S. West Texas Intermediate crude climbed $1.67, or 2%, to $86.01. The escalation has now stretched over nearly two weeks, with U.S. forces striking Iranian military targets overnight and Kuwait reporting attacks by Iranian drones. Three oil tankers carrying Saudi crude reversed course in the Red Sea after threats from Yemen's Iran-aligned Houthis, raising fresh concerns about energy supply routes through the strategic waterway.

The sustained rally threatens to reignite inflationary pressures just as central banks in the U.S., Europe and Asia signal they are nearing the end of their tightening cycles. Brent at current levels adds roughly $15 to the cost of a barrel of crude compared with early June, a move that — if sustained — could push gasoline prices higher and complicate the Federal Reserve's path toward rate cuts. U.S. Treasury yields have already risen to their highest in two months on inflation concerns.

The military campaign shows no signs of de-escalation. Washington said Iran has attacked more than 30 commercial vessels transiting the Strait of Hormuz over the past three months, a key chokepoint through which about a fifth of the world's oil passes. The U.S. has responded with sustained airstrikes, now in their 11th consecutive night, targeting Iranian military infrastructure.

Supply Disruptions Spread to Shipping Routes

The Houthi threat to Red Sea shipping has added a second layer of supply risk. Three Saudi crude tankers reversed course Tuesday after receiving threats, according to shipping data, forcing traders to reroute cargoes around the Cape of Good Hope — a detour that adds roughly two weeks to delivery times and increases freight costs. The disruptions echo the Red Sea crisis of early 2024, when Houthi attacks on commercial vessels forced major shipping lines to avoid the Suez Canal, though the current conflict involves direct state-on-state military action between the U.S. and Iran.

Gold, a traditional haven asset, climbed 0.9% to $4,112.70 an ounce, hitting a two-week high as investors rotated into safe havens. The Japanese yen, meanwhile, slid past 163 against the dollar for the first time since 1986, keeping traders alert for possible intervention by Japanese authorities. Japan's Finance Minister Satsuki Katayama pledged decisive action if needed, while Chief Cabinet Secretary Minoru Kihara said the government stands ready to respond to excessive yen moves.

The last time Brent traded above $92 for a sustained period was in April 2025, when a previous escalation in the Iran conflict pushed prices above $95 before a brief cease-fire brought them back below $85. That pattern of conflict-driven spikes followed by rapid retreats may offer a template, though the current 11-day stretch of uninterrupted U.S. strikes suggests no near-term off-ramp.

For oil markets, the key question is whether the conflict disrupts actual supply from major producers. While no barrels have been taken offline yet, the Strait of Hormuz shipping threats and Red Sea diversions are raising the risk premium embedded in crude prices. If the conflict escalates further to directly impact Iranian or Saudi production, analysts warn Brent could push above $100.

This article is for informational purposes only and does not constitute investment advice.