Global oil prices climbed sharply on Monday after US President Donald Trump rejected Iran’s response to a US-backed peace proposal, reigniting fears of prolonged supply disruptions in the Middle East and renewed volatility across energy markets.
Brent crude futures rose by nearly 4 percent during early trading, reaching above $105 per barrel before easing slightly, while US West Texas Intermediate (WTI) crude also recorded strong gains as traders reacted to escalating geopolitical tensions.
The market rally followed Trump’s statement describing Iran’s latest response to Washington’s peace proposal as “totally unacceptable,” a development analysts say has reduced expectations of an imminent breakthrough in negotiations aimed at easing the months-long conflict linked to the Strait of Hormuz crisis.
The Strait of Hormuz, one of the world’s most critical energy chokepoints, remains partially disrupted, limiting global crude supply flows and sustaining upward pressure on prices. Roughly one-fifth of global oil shipments normally pass through the waterway, making any instability in the region highly consequential for international energy markets.
Reuters reported that Brent crude climbed to as high as $105.99 per barrel during trading before settling lower, while WTI approached the $100 mark amid growing fears that tensions between Washington and Tehran could deepen further.
The latest price increase reversed some of last week’s losses, when optimism surrounding possible diplomatic progress had briefly pushed oil prices lower. However, traders now appear increasingly cautious amid signs that negotiations between the US and Iran remain stalled. EFA.
