U.S. President Donald Trump rejected Iran's latest response to a Middle East peace proposal.
Brent crude futures surged 4.5% following the announcement. Prices traded near $105.80 a barrel. West Texas Intermediate approached the $100 mark.
The rejection dampened hopes for reopening the Strait of Hormuz. This critical global oil supply channel remains effectively closed.
Investors expect prolonged supply route disruptions to keep energy markets tight. Elevated prices continue to benefit oil and gas producers.