Oil Hits $110 Amid US-Iran Stalemate; Brent Up 3.6% to $111.86

Oil prices reached $110 for the first time in three weeks on Tuesday, as the US and Iran showed little progress toward a peace deal that would secure energy supplies through the Strait of Hormuz. Brent crude, the international benchmark, rose 3.6 per cent to $111.86 a barrel, while West Texas Intermediate gained 2.2 per cent to $98.47.

The White House confirmed Monday that US officials were reviewing Iran’s latest proposal, but maintained «red lines» against Tehran obtaining a nuclear weapon. Press secretary Karoline Leavitt stated President Donald Trump would address the matter soon. Secretary of State Marco Rubio expressed «questions» about Iran’s offer and its authority, emphasizing the nuclear program remains the «core issue.»

The surge in oil prices, with Brent having previously peaked at $119 during the conflict, has reignited inflation concerns and pressured government bond markets. In the UK, the 10-year gilt yield surpassed 5 per cent for the first time since late March, and 30-year yields reached 5.7 per cent. US 10-year Treasury yields rose to 4.36 per cent, and German Bund yields to 3.08 per cent. Jim Reid of Deutsche Bank noted that Brent remaining above $100 for nearly a week is driving wider inflation concerns.