Global oil prices jumped 5% Monday after President Donald Trump rejected Iran’s latest peace proposal. The move reignited fears of a prolonged supply blockade in the critical Strait of Hormuz.
Benchmark Brent crude climbed past $105 per barrel in morning trading. Simultaneously, U.S. West Texas Intermediate neared $100, marking one of the sharpest single-day rallies since the regional conflict intensified in February.
President Trump dismissed Tehran’s response to a U.S.-backed ceasefire as “unacceptable.” The diplomatic deadlock dashed investor hopes for a quick de-escalation in a region responsible for a fifth of global oil flows.
The surge compounds a 10-week energy crisis that has already pushed global inflation higher. Analysts warn that tight inventories and the ongoing closure of the Strait could sustain triple-digit prices through summer.
This latest volatility follows months of military tension that began with a de facto closure of the Persian Gulf. Shipping insurance costs remain at record highs as commercial vessels continue to avoid the zone.
