Donna Dong
Research Analyst, Flux
Brent Rangebound at $110.93/bbl
Brent holds above $110 as Iran tensions rise, tanker storage builds, and India delays jet fuel price hikes.
The Jul’26 Brent futures contract has traded within a range between $110/bbl and $111/bbl this afternoon, currently printing at $110.93/bbl as of the time of writing at 17:03 BST.
In the news, US President Donald Trump has given Iran until the weekend to secure a peace deal to end the Iranian war. Speaking to reporters at the White House, he stated that “[he will give them] 2 or 3 days, maybe Friday, Saturday, Sunday something. Maybe early next week, a limited period of time, because we can’t let them have a new nuclear weapon.” Elsewhere, Iranian oil stored in tankers near the Strait of Hormuz has increased significantly in recent weeks as Iran seeks ways to bypass the US blockade targeting its oil exports in the Gulf of Oman. Data from the US-based non-profit United Against Nuclear Iran (UANI) indicates that the number of tankers carrying Iranian crude and petrochemicals in the Gulf has increased to 49, up from 29 prior to the US blockade initiated on 13 April. Additionally, UANI and the Financial Times have detected over a dozen tankers gathered near the Iranian port of Chabahar, outside the Strait of Hormuz but within the US blockade zone. In India, Bloomberg reported that airlines have asked state oil companies to postpone raising jet fuel prices for domestic flights until the Iranian war is over. India’s oil marketing companies have increased jet fuel prices for international flights, more than doubling since the Iran war began. However, domestic flight prices have not yet been raised. A decision is anticipated by 01 June, with state oil companies mulling a 25% increase. Currently, they are deliberating on delaying the hike suggested by airlines such as Air India, IndiGo, and SpiceJet. In other news, the prime ministers of Japan and South Korea have agreed to enhance oil supply cooperation, including joint storage initiatives. Further details have not been given. Finally, at the time of writing, the front-month (Jul/Aug) and 6-month (Jul/Jan) Brent futures spreads are at $4.55/bbl and $21.34/bbl, respectively.
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