Global oil prices surged again today as stalled U.S.-Iran diplomacy and continued disruption around the Strait of Hormuz pushed Brent crude above $111 per barrel, intensifying inflation fears across global markets.

Reuters reported Brent crude rising 0.4% to $111.71 per barrel, while investors assessed the growing likelihood of a prolonged blockade and delayed peace resolution. President Donald Trump is reportedly preparing for an extended strategic response as diplomatic efforts remain stuck.

The Strait of Hormuz remains one of the world’s most critical shipping chokepoints, handling nearly 20% of global oil and LNG flows. Any prolonged disruption threatens supply chains across Asia, Europe, and energy-importing nations.

For businesses, higher crude prices are rapidly increasing transportation, aviation, and manufacturing costs. Airlines, logistics companies, and heavy industry are already adjusting forecasts for higher fuel expenses through Q2.

Economically, central banks face renewed inflation pressure just as investors were hoping for rate cuts. Treasury markets remain cautious, with elevated oil prices complicating the U.S. Federal Reserve’s policy outlook.

Looking ahead, analysts warn that unless Hormuz shipping normalizes quickly, oil could remain above $110 for an extended period, delaying global monetary easing and pressuring economic growth.

Source : Reuters.