Crude oil prices climbed sharply on Monday after US President Donald Trump rejected Iran’s latest proposal for a seven-day truce, renewing concerns over prolonged disruption to energy supplies and fuelling fresh inflation worries.
Iran had proposed reopening the strategically important Strait of Hormuz within a week as part of efforts to halt hostilities and resume negotiations with Washington. The waterway is a major route for global oil shipments, making its continued disruption a key concern for energy markets.
Channels Television reported that Trump confirmed that he had rejected the proposal but indicated that diplomatic contacts could continue. According to Axios, the US president said he expected further talks with Iran this week, while regional mediators, including Qatar, continued efforts to narrow differences between the two sides.
Iran has linked the reopening of the waterway to several conditions, including the lifting of the US naval blockade and sanctions affecting its oil exports, as well as the restoration of a ceasefire. Washington, however, has been seeking wider concessions from Tehran, including on nuclear issues.
The latest development reversed some of last week’s decline in crude prices. Brent crude rose about 1.8 per cent to $106.19 a barrel, while West Texas Intermediate gained 1 per cent to $93.34 around 0330 GMT, according to market figures cited in the report.
The renewed oil-price pressure also weighed on parts of the Asian stock markets and pushed bond yields higher, as investors turned their attention to upcoming US inflation and employment data that could influence the Federal Reserve’s next interest-rate decision.
