Trump Rejects Iran’s Response as Oil Prices Surge on Strait of Hormuz Closure
By Aboki Forex —
President Donald Trump has described Iran’s response to a United States peace proposal as “unacceptable,” heightening fears of a prolonged closure of the Strait of Hormuz. The development sent oil prices rallying sharply on Monday.
Brent crude futures jumped $4.16, or 4.11%, to $105.45 a barrel by 0340 GMT. U.S. West Texas Intermediate crude rose $4.38, or 4.59%, to $99.80 a barrel.
Trump and Chinese President Xi Jinping are set to discuss Iran among other topics later this week. The outcome of that conversation will be closely watched by global energy markets.
Meanwhile, the chief executive of Saudi Aramco warned that the loss of 1 billion barrels of oil will slow the recovery of the oil market. The warning came as two more tankers exited the Strait of Hormuz with their tracking systems switched off, further tightening supply.
The Strait of Hormuz remains largely closed, keeping the global market under pressure. Traders are now bracing for more volatility as diplomatic tensions show no signs of easing.