Worries about escalation in the Middle East resurface, Brent oil rebounds 4% approaching $104.

On Monday, oil prices rebounded slightly after a sharp drop, as concerns about other countries potentially joining the conflict in the Middle East and an Iranian lawmaker ruling out the possibility of negotiations with the United States emerged. Brent crude prices rose about 4% to around $104 per barrel after plunging 11% on Monday. Previously, US President Trump delayed the threat to strike Iranian energy infrastructure for five days and claimed to be in negotiations with Iran. However, Tehran denied engaging in negotiations, while Israel continued to launch attacks. Meanwhile, WTI crude oil prices also rose nearly 4%. It was reported that US allies in the Persian Gulf are gradually joining the battle. The report cited sources as saying that this includes Saudi Crown Prince Mohammed bin Salman who is eager to rebuild deterrence and is about to decide to join the attack. Local media reported that Ali Nikzad, deputy speaker of the Iranian parliament, stated that the Strait of Hormuz will not return to its previous state and will not negotiate with Washington. Due to concerns that hostilities between the US, Israel, and Iran in the Middle East could trigger a global energy crisis and raise inflation, Brent crude oil has risen by over 40% this month. This war has blocked the passage of the Strait of Hormuz, forcing oil-producing countries in the Persian Gulf to cut their oil production by millions of barrels per day. The prices of oil products such as diesel and aviation fuel have even risen more than crude oil, putting pressure on consumers and making governments uneasy. Daan Struyven, co-head of global commodity research at Goldman Sachs, stated in an interview: "If this shock persists, the extreme supply tightness currently concentrated in the Middle East and Asia will spread." He pointed out that ultimately, demand will need to be suppressed to rebalance supply. Iran is reportedly reviewing letters received from the US through intermediaries; the report cited a senior Iranian Foreign Ministry official. Meanwhile, it was reported that gas facilities in the central Iranian city of Isfahan were attacked. Analysts at the Royal Bank of Canada Capital Markets, including Helima Croft, noted in a report: "It remains unclear how far these secret talks have progressed and whether the IRGC still firmly controls the Strait of Hormuz whether or not they are willing to make peace at this stage. Ultimately, what matters to the physical market may well be the vessels, not the empty rhetoric." In recent days, although most of the major shipping routes through the Persian Gulf remain blocked, a small number of ships have successfully left the Gulf. Over the weekend, Trump threatened to bomb Iran's energy infrastructure unless Iran fully opened the Strait of Hormuz within 48 hours. It is believed by sources that his decision to pause the airstrikes was to control oil prices, a point that Trump also acknowledged on Monday. He said, "Once a deal is reached, the price of oil will plummet." The US president also hinted that Washington and Tehran could jointly control the Strait of Hormuz. He said that the narrow waterway connecting the Persian Gulf and the global market "could be open soon if feasible". The constantly changing messaging from US leaders has left investors weary and trading volume suppressed, as traders have to sift through almost constant and sometimes contradictory news headlines. Of the six largest historical fluctuations in Brent crude oil futures, four have occurred after conflicts erupted. Will Todman, senior research fellow at the Center for Strategic and International Studies (CSIS) Middle East Program, said: "Among the series of bad choices facing President Trump, perhaps the outcome of negotiations might be the best. However, Iran is highly skeptical of these talks, fearing that President Trump is just delaying to send more military forces to the region."