Oil prices surge past $107 as Trump rejects Iran’s Hormuz reopen plan
Brent crude jumped more than 3% on Monday after President Trump dismissed Tehran’s seven-day plan to reopen the Strait of Hormuz, pushing the benchmark above $107 a barrel.
What moved: Brent crude, the international oil benchmark, rose more than 3% on Monday and neared $108 a barrel during Asian trading, Al Jazeera reported. After easing later, November Brent futures were around $107.35 a barrel shortly before 08:00 GMT.
The trigger was President Donald Trump’s Saturday rejection of Iran’s proposal to reopen the Strait of Hormuz and move toward ending the war, Al Jazeera and The Independent reported.
The proposal markets were watching: At the U.N. General Assembly on Friday, Iran said the United States would need to release frozen Iranian funds, lift sanctions, and end its naval blockade; in return, Tehran would reopen the strait and return to nuclear talks within a week. Trump said no. Iranian Foreign Minister Abbas Araghchi has since said Tehran is prepared for a “doomsday” war while still trying diplomacy, The Independent reported.
Why Hormuz matters for prices: Before the U.S. and Israel launched strikes on Iran in late February, roughly one-fifth of global oil supplies moved through the strait, Al Jazeera reported. Commercial shipping there has stayed depressed. MarineTraffic counted 132 transits from September 21 to 27, up from 116 the prior week — still far below the pre-war pace of about 130 crossings a day.
Asia stocks, mixed backdrop: Major Asia-Pacific markets were mixed. Japan’s Nikkei 225 fell 0.73% and South Korea’s Kospi dropped 2.70%, while Hong Kong’s Hang Seng rose 0.54% and Australia’s S&P/ASX 200 edged up 0.17%, Al Jazeera said. Wall Street had closed Friday with the S&P 500 up about 0.5%.
What this means: Oil is pricing a longer Hormuz disruption after hope of a quick reopen faded. Until shipping normalizes or negotiators put a credible deal back on the table, energy markets will keep reacting to every diplomatic signal from Washington and Tehran.