Gotrade News - Oil prices rallied roughly 3% to two-week highs on Monday (April 27). The advance was driven by stalled US-Iran peace negotiations and continued Strait of Hormuz shipping constraints.
Brent crude climbed 2.8% to $108.23 per barrel and West Texas Intermediate rose 2.1% to $96.37. Brent recorded its sixth consecutive day of gains, the first such streak since March 2025.
Key Takeaways:
- Brent settled at $108.23 per barrel, the highest close since April 7, with WTI at its highest since April 13.
- Iran's proposal would reopen the Strait of Hormuz contingent on the US lifting its port blockade.
- Trump has convened national security officials to review the proposal under strict nuclear conditions.
Bob Yawger, director of energy futures at Mizuho, said the widening Brent premium over WTI could attract buyers to the US Gulf of Mexico region. The differential could push US crude oil exports toward fresh record highs.
Karoline Leavitt of the White House confirmed Trump met with national security officials to assess Iran's offer. Strict limitations on Iran remain in place with the firm requirement of preventing Tehran from acquiring nuclear weapons.
Iran has proposed a temporary accord under which it would reopen the Strait of Hormuz if Washington lifts its port blockade. The proposal also defers more complex nuclear talks to a subsequent phase.
Trump indicated he will release an official statement on the proposal in the near future. The signaling preserves the geopolitical risk premium currently embedded in oil futures pricing.
Global oil markets responded to the combination of supply tightness and diplomatic uncertainty with a six-day rally. The move adds to inflationary pressures that central banks will reference at this week's meetings.
For investors, the rally supports energy equities while pressuring sectors sensitive to fuel costs. Statements from Trump and the FOMC outcome stand as the next near-term price catalysts.
