Brent Crosses $115 as Iran Rejects US Plan, Houthis Enter the War

Brent crude climbed above $115 per barrel after the US-Israeli war with Iran escalated following Israeli strikes on three nuclear facilities and the Houthis’ move to officially enter the war.

The Houthis’ missile strike on Israel today had little effect; however, the Iranian-backed group’s entry into the war could create a “nightmare scenario” if it attempts to choke off the Bab al-Mandeb strait.

In principle, Iran rejected a US-backed peace proposal with its own terms to end the war, escalating tensions around the Strait of Hormuz and reinforcing expectations of prolonged supply disruption in global oil markets.

The latest spike follows a fresh deadline extension by US President Donald Trump, who delayed potential military action while signaling progress in talks. However, Tehran’s outright rejection of the proposal has widened the diplomatic gap, pushing markets to price in sustained geopolitical risk.

At the center of the crisis is the Strait of Hormuz, a critical chokepoint that carries about 20 percent of global oil and gas flows. Since the conflict began in late February, shipping through the route has nearly collapsed, severely tightening global supply.

According to Reuters, Brent has surged more than 50 percent since the start of the war, with analysts warning that further escalation or damage to key Iranian export infrastructure could push prices significantly higher.

On-ground shipping data highlights the severity of the situation. Several vessels attempting to exit the Gulf have turned back despite assurances of safe passage, underscoring persistent security risks and the limited flow of oil through the Strait.

Reuters estimate that a prolonged disruption could remove up to 13 to 14 million barrels per day from global markets, making it one of the most severe energy shocks in decades.