Oil prices rose on Monday after US President Donald Trump rejected Iran’s proposal to reopen the Strait of Hormuz within seven days, raising concerns over continued disruptions to global oil supplies.
Brent crude futures climbed $1.82, or 1.74%, to $106.14 a barrel, while US West Texas Intermediate (WTI) gained $1.14, or 1.23%, to $93.55 a barrel by 2202 GMT, according to Reuters.
Iran had proposed reopening the strategically important waterway as part of efforts to end the conflict and resume negotiations over its nuclear programme. The proposal reportedly included easing US sanctions, lifting the naval blockade of Iranian ports and providing access to frozen Iranian assets.
The Strait of Hormuz is a major global energy route, with roughly one-fifth of global oil supplies normally passing through the waterway. Shipping activity has fallen sharply during the conflict, increasing uncertainty over energy supplies and keeping oil markets volatile.
Trump has rejected Iran’s terms but indicated that further negotiations could continue. The unresolved situation around the Strait of Hormuz is expected to remain a key factor for global oil prices in the near term.
