Brent Crude Surges as Trump Rejects Iran's Strait of Hormuz Proposal
Brent crude oil prices surged to $107.29 per barrel on Monday, up 2.84 percent from Friday's close of $104.32, according to TradingEconomics market data. The price increase follows US President Donald Trump's rejection of Iran's proposal to reopen the Strait of Hormuz within seven days.
Trump told reporters that he had rejected the offer, saying 'I reject their proposal' and that 'they want to make a deal where they open the strait immediately because they are losing so badly.'
The rejection of the proposal removes the fastest path back to $95 per barrel, according to analyst Patrick O'Hare. The bear case scenario, which puts Brent at around $95, is now about 11 percent below Monday's price.
However, the bull case scenario, which would see Brent prices rise above $120 per barrel, remains intact. This scenario is based on a prolonged disruption or stalemate in negotiations between the US and Iran, according to Goldman Sachs and HSBC.