Global oil prices jumped sharply on Monday after US President Donald Trump rejected Iran’s response to a US-backed peace proposal, reigniting concerns over supply disruptions and continued tensions in the strategically vital Strait of Hormuz.
Brent crude futures rose by $4.16, or 4.11 percent, to reach $105.45 per barrel by 0340 GMT, while US West Texas Intermediate (WTI) crude climbed $4.38, or 4.59pc, to $99.80 per barrel.
The rally followed Trump’s remarks describing Iran’s response as “unacceptable,” intensifying fears that ongoing geopolitical tensions could further disrupt global oil flows through the Strait of Hormuz — a critical route for international energy supplies.
Last week, both benchmark contracts had recorded weekly losses of nearly 6pc amid optimism over a possible resolution to the 10-week-long conflict and expectations that oil shipments through the Strait would soon normalize.
“The oil market continues to trade like a geopolitical headline machine, with prices swinging sharply based on every comment, rejection, or warning coming from Washington and Tehran,” said Priyanka Sachdeva, Senior Market Analyst at Phillip Nova.
Trump is expected to arrive in Beijing on Wednesday for talks with Chinese President Xi Jinping, where discussions are likely to include the Iran crisis and regional stability, according to US officials.
Analysts believe China could play a key diplomatic role in easing tensions. “Market attention now shifts squarely to President Trump’s visit to China this week,” said Tony Sycamore, market analyst at IG Group. He added that investors hope Beijing will use its influence over Iran to help secure a comprehensive ceasefire and restore stability in the Strait of Hormuz.
Meanwhile, Saudi Aramco CEO Amin Nasser warned that the global market had lost nearly one billion barrels of oil over the past two months and said energy markets would require time to stabilize even if normal flows resume.
Shipping data from Kpler also showed that at least two crude tankers exited the Strait of Hormuz last week with tracking systems switched off to avoid potential Iranian attacks, highlighting rising security concerns in the region.
Analysts at ING Group noted that geopolitical risks were likely to keep a premium embedded in oil prices for the foreseeable future. The bank expects Brent crude to remain above $90 per barrel through 2026 and average between $80 and $85 per barrel in 2027 as inventories gradually recover and global demand strengthens.
By Reuters
