Vincent Wu
Research Associate, Flux
Brent Drops To $108
Global tensions rise: heavy strikes escalate, Iran rejects ceasefire, Saudi oil hit, Ukraine targets Russian energy hub.
Published: April 7, 2026
Written by:
Vincent Wu
4 page report
Jun'26 Brent futures have been under pressure this morning. The contract opened at $110.31/bbl at 01:00 BST and reached a daily high of $111.79/bbl at 05:15 BST before dropping to $108.10/bbl at the time of writing at 10:39 BST.
At Monday's White House press conference, Pete Hegseth confirmed Monday was already the largest volume of strikes since day one of the war, and said Tuesday would be even heavier. President Trump told reporters the entire country could be taken out in one night, with every bridge decimated and every power plant destroyed in four hours. Pakistan's army chief was in contact overnight with Vance, Witkoff, and Iran's foreign minister, brokering a 45-day ceasefire proposal, an immediate halt followed by 15 to 20 days of broader settlement talks. Trump called the Iranian response a "significant step but not good enough." Iran rejected the 45-day proposal outright via state media, demanding a permanent end to the war, sanctions relief, and guarantees of non-aggression instead. Overnight attacks on Saudi Arabia hit a petrochemical complex in Jubail's Eastern industrial area, causing fires at SABIC plants. Iranian ballistic missiles and drones targeted Jubail Industrial City, Saudi Arabia's Eastern Province. Jubail Industrial Zone, the world’s largest industrial hub, has an annual output of approximately 60 million mt of petrochemicals, accounting for 6-8% of global production. Ukraine reportedly carried out overnight drone strikes on Russia’s Ust-Luga port on April 7, a key Baltic Sea hub for oil exports, continuing a series of long-range attacks on Russian energy infrastructure. Russian officials claimed 22 drones were shot down, though the extent of damage remains unclear and the reports have not been independently verified. The escalation comes just after President Zelensky proposed a mutual energy ceasefire, while signalling Ukraine will continue strikes unless an agreement is reached. Finally, the Jun/Jul and Jun/Dec Brent futures spreads are at $9.37/bbl and $27.98/bbl, respectively.
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