Brent crude oil prices moved higher on Monday, April 6, amid a sharp escalation in geopolitical tensions.
According to Report, citing Interfax, as of 9:20 a.m. Baku time, June futures for Brent crude on the London-based ICE exchange rose to $109.77 per barrel (+0.68%). Meanwhile, May futures for WTI crude on NYMEX were trading at $111.35 per barrel.
Despite some global markets being closed due to Easter holidays, price volatility remains high.
The main driver behind the rise was a hardline ultimatum from Donald Trump. On Sunday, he stated that US forces would strike Iranian power plants and bridges as early as Tuesday if Tehran does not restore the free passage of ships through the Strait of Hormuz.
Tensions are further fueled by a lack of progress in diplomacy. According to media reports, the US and Iran, with mediation by Pakistan, Egypt, and Türkiye, are discussing a 45-day ceasefire. The talks are being conducted through direct correspondence between US Special Envoy Steve Witkoff and Iranian Foreign Minister Abbas Araghchi. However, the Iranian side has so far rejected all proposals from the Trump administration. Sources say the chances of reaching a deal within the next 48 hours are extremely low.
An additional factor influencing the market was a decision by eight OPEC+ countries. Following a meeting over the weekend, alliance members agreed to increase oil production quotas by 206,000 barrels per day in May.