Concerns Over 'Forever Conflict' Between U.S. and Iran... Brent Crude Surges Past $110 Again (Comprehensive)

US: "Sanctions for Paying Hormuz Transit Fees"


"Concerns About Prolonged Stalemate Emerge in the White House"

Reuters Yonhap News

As concerns grow that the United States and Iran will remain locked in a prolonged standoff without further escalation or negotiations, international oil prices have surged again. The U.S. government has increased pressure by threatening sanctions against countries that pay transit fees to Iran for passage through the Strait of Hormuz, leading Brent crude—the global oil benchmark—to surpass the $110 mark once more.

On the 28th (local time), June Brent crude futures on the London ICE Futures Exchange closed at $111.26 per barrel, up 2.8% from the previous session. This is the first time in three weeks since the 7th that Brent crude has crossed the $110-per-barrel threshold. June West Texas Intermediate (WTI) futures on the New York Mercantile Exchange also climbed 3.69% from the previous day to settle at $99.93 per barrel.

Oil prices have risen amid projections that the U.S. and Iran, trapped in a prolonged stalemate that is neither war nor peace, could enter a state of "forever conflict" akin to the Iraq War. Oilprice.com, an energy industry outlet, reported, "Market fears have intensified as skepticism grows over President Donald Trump's response to Iran's new proposal following the collapse of the second round of talks between the U.S. and Iran."

The U.S. Treasury’s warning that it would sanction countries or entities paying Iran transit fees for the Strait of Hormuz also fueled the rise in oil prices. The Treasury stated, "Direct or indirect payments to the Iranian government or the Islamic Revolutionary Guard Corps (IRGC) in exchange for safe passage through the Strait of Hormuz are not permitted for U.S. persons—including U.S. financial institutions—or foreign entities owned or controlled by U.S. persons." It further warned, "Such payments also pose significant sanctions risks for non-U.S. persons."

In addition, 35 individuals and organizations involved in Iran’s so-called "shadow banking" network—used to channel financial resources to Iran while evading U.S. sanctions—have been added to the sanctions list. U.S. Treasury Secretary Scott Bessent stressed, "Iran’s shadow banking system is a critical source of funding for its military activities. It destabilizes global trade and fuels violence throughout the Middle East."

Concerns about a protracted stalemate are mounting both inside and outside the White House. Citing aides and confidants of President Donald Trump, U.S. political outlet Axios reported, "With the midterm elections in November approaching, a drawn-out conflict would be politically and economically disastrous for President Trump. The United States will have to maintain additional troop deployments in the Middle East for the coming months and continue to enforce the blockade of the Strait of Hormuz."

However, President Trump indicated on this day that the Iranian regime was in a state of collapse and suggested that the Strait of Hormuz would soon be reopened. Posting on his social networking service, Truth Social, Trump wrote, "Iran just informed us that they are in a 'State of Collapse.' They want us to reopen the Strait of Hormuz as soon as possible while attempting to resolve their leadership crisis." However, he did not provide specific details, such as who in Iran delivered this message or the exact circumstances.

This content was produced with the assistance of AI translation services.