Hormuz Standoff Drives Oil Prices Up Amid Ongoing Shipping Disruptions

Oil prices rose nearly 3% on Monday after Iran announced it would not soften its conditions for reopening the Strait of Hormuz, following US President Donald Trump's rejection of Tehran's proposal. The uncertainty surrounding the crucial oil shipping route's reopening has led to a surge in crude prices.

As of 02:43 ET (06:43 GMT), Brent futures increased by 2.8% to $107.27 per barrel, while West Texas Intermediate () crude futures gained nearly 2% to $94.13 per barrel. This marks an 18% gain in Brent futures for the month.

Iran's proposal would allow the Strait of Hormuz to reopen within seven days, contingent on Washington lifting its naval blockade, easing military pressure, removing sanctions on Iranian oil sales, and agreeing to a ceasefire. Trump has stated that he expects negotiations with Iran to resume this week, according to an Axios report.

The disruption in shipping activity through the Strait of Hormuz has forced Gulf producers to seek alternative ways of moving crude, while Iran-backed Houthi forces in Yemen have stepped up attacks on Saudi Arabia and commercial shipping in the Red Sea. Trump said more than 20 million barrels had transited over the weekend, according to Axios.