Crude Oil Prices Rise Over 2.5% After Trump Rejects Iran Strait Of Hormuz Proposal
· Free Press Journal
Oil prices jumped more than 2.5% during the Asian trade on Monday after US President Donald Trump rejected Iran’s proposal to reopen the Strait of Hormuz and restart diplomatic talks, raising concerns that disruptions to global energy supplies could continue.
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Brent crude rose 2.65% to over $107 a barrel, while US West Texas Intermediate (WTI) crude gained 1.8% to $94 a barrel.
The rise in prices followed Trump’s decision to reject Tehran’s proposal aimed at resolving the conflict and restoring shipping movement through the strategic waterway. The development has increased uncertainty over when normal oil transport operations through the strait could resume.
Sensex And Nifty Slip At The Opening Bell, Global Headwinds Keep Investors On EdgeIran’s proposal and US response
Iran had proposed reopening the Strait of Hormuz and restarting negotiations within seven days, subject to several conditions, including the removal of the US naval blockade on Iranian ports, easing restrictions on Iranian oil exports and a regional ceasefire.
Trump rejected the proposal on Saturday, saying the conditions were unacceptable. He also said Iran had overplayed its position, according to media reports. However, Trump later told Axios that negotiations with Tehran could resume this week, suggesting diplomatic efforts may continue.
Iran has maintained that a diplomatic resolution remains possible but has said reopening the waterway depends on meeting its conditions. Iranian Foreign Minister Abbas Araghchi said Tehran remained committed to negotiations while keeping its position unchanged on the reopening of the strait.
Strait of Hormuz remains key oil route
The Strait of Hormuz, which connects the Persian Gulf with the Gulf of Oman, is one of the world’s most important energy transit routes. A substantial portion of global crude oil shipments passes through the narrow waterway, making any disruption a major concern for energy markets.
The ongoing conflict involving the US, Israel and Iran has affected maritime activity in the region, fuelling concerns over global oil availability. A prolonged disruption could keep crude prices elevated and increase energy costs for oil-importing countries, including India.