Oil Prices Climb Over 1% as Trump Rejects Iran Peace Deal
Crude prices rebounded more than 1% after US President Donald Trump rejected an Iranian peace deal aimed at resolving the conflict and reopening the Strait of Hormuz.
Oil prices rebounded by more than 1% on Monday after US President Donald Trump rejected a peace proposal from Iran that was intended to resolve the ongoing conflict and reopen the Strait of Hormuz.
Brent crude futures climbed $1.82, or 1.74%, to reach $106.14 a barrel by 2202 GMT. US West Texas Intermediate crude stood at $93.55 a barrel, up $1.14, or 1.23%.
The rejection of the Iranian offer removes a potential path to de-escalation and keeps the key shipping route closed, sustaining pressure on global crude supplies. The Strait of Hormuz is a vital conduit for oil shipments, and its closure has tightened markets.
Traders responded to the prospect of prolonged disruption, pushing both benchmarks higher in the session. The gains mark a reversal from earlier losses tied to hopes that a diplomatic breakthrough might restore flows through the waterway.
With the peace deal turned down, the conflict remains unresolved and the strait stays shut, leaving oil markets sensitive to further developments.