Trump Rejects Iran's Peace Proposal, Oil Prices Surge 4% as Strait of Hormuz Remains Closed

euronews and the-hindu report a 4% jump in oil prices, while france24 and bbc-world mention the Strait of Hormuz closure as a key factor.

dawn provides specific price figures and mentions the loss of 1 billion barrels of oil, while other sources focus on the geopolitical context.

Benchmark crude oil prices rose on Monday as US President Donald Trump rejected Iran's latest counterproposal to find an end to the war in the Middle East. The continued closure of the Strait of Hormuz is leaving its mark on economies around the world, with India's Prime Minister Narendra Modi calling for reduced fuel use and Chinese inflation gauges ticking up higher than expected. Also in this edition: French President Emmanuel Macron announces more than €1 billion in investment in Kenya.

Oil prices surge as U.S. President Donald Trump declines Iran’s response to the U.S. proposal to ceasefire as “TOTALLY UNACCEPTABLE!”

Crude prices jumped on Monday morning after US President Donald Trump rejected Tehran’s response to the latest proposal on ending the war in Iran.

US President Donald Trump's swift rejection of Iran's response to a US peace proposal has sent oil prices surging amid concerns the 10-week-old conflict will ⁠drag on, keeping shipping through the Strait of Hormuz paralysed.

US President Donald Trump's swift rejection of Iran's response to a US peace proposal has sent oil prices surging amid concerns the 10-week-old conflict will ⁠drag on, keeping shipping through the Strait of Hormuz paralysed.

Oil prices rallied on Monday, after US President Donald Trump said Iran’s response to a US proposal was “unacceptable,” raising supply fears as the Strait of Hormuz stayed largely closed, which kept the global market tight. Brent crude futures climbed $4.16 or 4.11 per cent to $105.45 a barrel at 0340 GMT. US West Texas Intermediate was at $99.80 a barrel, up $4.38, or 4.59pc. Last week, both contracts recorded 6pc weekly losses on hopes for an imminent end to the 10-week-old conflict that would allow oil transit through the Strait of Hormuz. “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 scheduled to arrive in Beijing on Wednesday and is expected to discuss Iran, among other topics, with Chinese President Xi Jinping, according to US officials. “Market attention now shifts squarely to President Trump’s visit to China this week,” IG market analyst Tony Sycamore said in a note. “There is hope he can persuade Beijing to leverage its influence over Iran to push for a comprehensive ceasefire and a resolution to the ongoing disruption in the Strait of Hormuz.” The world has lost about 1 billion barrels of oil over the past two months and energy markets will take time to stabilise even if flows resume, Saudi Aramco CEO Amin Nasser said on Sunday. Another two tankers carrying crude exited the Strait of Hormuz last week with trackers switched off to avoid Iranian attacks, Kpler shipping data showed, underscoring a rising trend to sustain Middle East oil exports. “Even if the acute oil shock fades by late 2026, the ongoing risk of renewed disruption in the Strait of Hormuz, depleted inventories and weaker policy coordination is expected to keep a geopolitical risk premium embedded in prices,” ING analysts wrote in a note on Monday. They expected Brent to remain above $90 per barrel through 2026 and around $80 to $85 per barrel into 2027 as demand growth resumes and inventories are gradually rebuilt.

The Strait of Hormuz waterway remains effectively shut, severely disrupting global energy shipments.