Brent crude tops $102: Iran declares readiness to fight a "high-intensity war"

Brent crude oil prices have surged past $102 per barrel, reviving concerns over a prolonged U.S.-Iran conflict. Bloomberg reported that Iranian senior officials stated that with the U.S. continuing its attacks on Iranian territory, Iran has no intention of backing down and is prepared to further escalate its counterattacks. U.S. President Trump meanwhile said the war could last until after the November midterm elections, and gasoline prices are unlikely to drop significantly in the short term, further dimming expectations of an early de-escalation of the conflict. Brent crude has risen nearly 70% so far this year, with its Wednesday physical benchmark price hitting $114 at one point. Meanwhile, U.S. diesel prices are approaching $6 per gallon, and gasoline and diesel prices in Europe have also continued to climb, further intensifying energy inflationary pressures. Market analysts noted that if the conflict further disrupts oil shipments through the Strait of Hormuz, oil prices could continue to rise. Currently, the U.S. is squeezing Iran’s oil exports via maritime blockades, while White House advisors have discussed scenarios where the war could last through the end of Trump’s term. Additionally, a rebound in crude oil purchases by Asian countries has further tightened global supplies, though high oil prices may force some refineries to cut processing volumes. U.S. diesel inventories are projected to fall to their lowest level in over 20 years this month.