Brent Tops $97 as New US Strikes Undercut Iran Deal Hopes
Updated
Updated · Reuters · May 26
Brent Tops $97 as New US Strikes Undercut Iran Deal Hopes
8 articles · Updated · Reuters · May 26
Brent crude rose more than 1% to $97.32 a barrel after fresh U.S. strikes in southern Iran cooled expectations of a near-term U.S.-Iran deal.
Doha talks still went ahead, with Iran's top negotiator and foreign minister meeting Qatar's prime minister, while Nikkei reported both sides were discussing reopening the Strait of Hormuz 30 days after any deal.
Stocks reflected that uncertainty: MSCI's Asia-Pacific index outside Japan gained 0.8%, Japan's Nikkei fell 0.2%, and Nasdaq futures pared gains to 0.9%.
The dollar steadied on safe-haven demand and Treasuries were little changed, with the 10-year yield at 4.5024% after last week's inflation- and rate-driven bond selloff.
Investors remain focused on whether war-related supply disruptions and higher energy prices will persist long enough to revive inflation and keep global borrowing costs elevated.
As Hormuz talks advance, will Iran's demand to 'manage' the strait be the dealbreaker for global trade security?
With $100 billion in frozen assets on the table, is Iran's demand a path to peace or a poison pill for negotiations?
A deal may reopen the Hormuz Strait, but will soaring insurance rates create a new, invisible blockade for global shipping?
Market Turmoil and Diplomacy in the 2026 Strait of Hormuz Crisis: Economic and Geopolitical Fallout
Overview
On May 25, 2026, global markets and geopolitics are on edge, balancing cautious optimism for diplomatic breakthroughs with the ongoing reality of military actions. Recent days have seen intensified diplomacy, highlighted by Pakistan’s army chief visiting Tehran, signaling a stronger mediation role for regional powers to prevent a wider Iran-U.S. conflict. These efforts have brought talks to a decisive stage, offering hope for de-escalation. However, persistent military actions and economic shocks, especially in energy markets, continue to threaten stability, making the outcome of current negotiations critical for both regional peace and the global economy.