Oil Prices Rise After Trump Rejects Iran Proposal on Hormuz Crisis

Oil prices climbed after US President Donald Trump rejected Iran’s response to his latest peace proposal, prolonging disruptions in the strategically vital Strait of Hormuz, Yongchang Chin and Alex Longley reported for Bloomberg.

The conflict has caused one of the largest oil supply disruptions in modern history.

Brent crude futures rose as much as 4.6% to nearly $106 per barrel before trimming gains, while West Texas Intermediate crude traded near $98.

The near-halt of shipping traffic through the Strait of Hormuz since the conflict began has sharply reduced exports of crude oil, natural gas, and fuel products to global markets, driving up energy prices and fueling inflation concerns.

The International Energy Agency said the conflict has caused one of the largest oil supply disruptions in modern history.

“There’d been an expectation that some of the diplomatic channels were going to produce some more positive results,” Emily Ashford, head of energy research at Standard Chartered, said in a Bloomberg Television interview.

“We’re still back in that stalemate situation, and every day, every week that passes is more barrels lost,” she added.

According to the The Wall Street Journal, Tehran offered to transfer part of its stockpile of highly enriched uranium to a third country but rejected proposals to dismantle its nuclear facilities.

Iran disputed that report, according to the semi-official Tasnim news agency.

Although some vessels have continued transiting Hormuz — including limited shipments from the UAE, Saudi Arabia, and Qatar — traffic remains far below pre-conflict levels.