Brent Tops $109, Sets New Annual High as Strait of Hormuz Remains Shut

Brent crude climbed to $109.41 on Monday, up 3.87% on the session and marking a new high for the year. The benchmark is up about 17% over the past week, its sharpest weekly advance since the Iran war began nine weeks ago. The latest surge followed the breakdown of peace talks over the weekend. Former U.S. President Donald Trump on Saturday called off a planned trip to Islamabad by Witkoff and Kushner, writing on Truth Social that "we have all the cards; they have none." Iranian Foreign Minister Abbas Araghchi traveled to Pakistan regardless, met with Pakistani officials, and departed without any U.S. counterpart present. Shipping through the Strait of Hormuz is effectively halted. Maritime intelligence firm Windward reported 19 commercial transits on Saturday, far below normal traffic through a route that typically handles roughly one-fifth of global oil and gas flows. Iran's Revolutionary Guard also reportedly boarded two cargo vessels in the strait over the weekend. Tehran has since signaled, via Pakistani intermediaries, a new proposal to extend the ceasefire and postpone nuclear negotiations until the U.S. blockade is lifted. Macquarie warned that a prolonged disruption could push Brent to $150. The International Energy Agency said the situation represents the largest energy supply shock on record.