US-Iran Deadlock Drives Oil Above $111/Barrel, Reignites Inflation Fears on May 18

According to FinanceFeeds market summary, the prolonged deadlock between Washington and Tehran over sanctions relief effectively locked down the Strait of Hormuz on May 18, 2026, triggering a severe global energy supply crisis. The crisis pushed WTI crude past the $102–$105 threshold and sent Brent crude soaring above $111 per barrel, intensifying energy costs for import-dependent nations worldwide.

The oil shock reignited inflation anxieties after initial hopes for a permanent slowdown faded. US economic data printed hotter than expected, with the Consumer Price Index climbing to 3.7% year-over-year and the Producer Price Index reaching 6%, prompting traders to reprice monetary expectations toward late-year rate hikes from the Federal Reserve and a hawkish June move from the European Central Bank.