Oil Prices Climb as U.S.-Iran Impasse Over Strait of Hormuz Continues

Oil prices gained on Monday as a diplomatic stalemate between the United States and Iran over the reopening of the Strait of Hormuz intensified concerns about global energy supplies. Brent crude futures for November delivery rose 1.1% to $105.48 per barrel, while West Texas Intermediate (WTI) crude futures climbed 0.8% to $93.12 per barrel as of 21:09 ET (01:09 GMT).

US Rejects Iranian Proposal

The price surge followed Iran's statement that it would not alter its conditions for resuming traffic through the vital waterway after U.S. President Donald Trump rejected its proposal. Tehran's offer would have seen the strait reopen within seven days, contingent on Washington taking several steps, including:

• Lifting its naval blockade
• Easing military pressure
• Removing sanctions on Iranian oil sales
• Agreeing to a ceasefire

Despite the public rejection, an Axios report indicated that President Trump expects negotiations to resume this week, with Qatar reportedly mediating between the two sides.

Broader Supply Risks

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The Strait of Hormuz is a critical chokepoint for global energy markets, with about a fifth of the world's oil and liquefied natural gas (LNG) supplies passing through it before the recent conflict. The disruption has forced Gulf producers to explore alternative export routes and has contributed to tightening global fuel markets.

Adding to supply fears, Iran-backed Houthi forces in Yemen have escalated attacks on Saudi Arabia and commercial vessels in the Red Sea. Saudi Arabia announced on Saturday that it had intercepted multiple ballistic missiles and drones launched by the group. These disruptions have pushed diesel prices in Europe and the U.S. to record highs as supplies of refined products from the Middle East and Russia are constrained.

Market Watching for Next Steps

Investors are closely monitoring the conflicting signals from the region. While shipping activity through the strait has been sharply curtailed, President Trump claimed that over 20 million barrels of oil had transited the route over the weekend, according to Axios. The market remains on edge, weighing the potential for a diplomatic breakthrough against the risk of further escalation and prolonged supply disruption.