Oil prices rose Monday after the White House rejected an Iranian proposal to reopen the Strait of Hormuz. Iran offered to end its blockade if the U.S. lifted its own naval blockade. However, the proposal, relayed by Pakistani intermediaries, postponed all negotiations regarding Iran's nuclear program.
President Trump reportedly refuses any deal that does not include the dismantling of Iran's nuclear capabilities. This stalemate continues to choke off roughly one-fifth of the world's oil supply. The diplomatic impasse follows Trump's cancellation of a planned envoy trip to Pakistan for weekend talks.
Brent crude futures traded above $106 per barrel. Prices reached a session high of nearly $108 earlier in the day. These levels reflect market expectations of prolonged shipping disruptions and heightened geopolitical risk for the energy sector.