Oil Prices Rally as Hopes for Hormuz Reopening Fizzle

Oil prices surged on Monday as hopes for an early reopening of the Strait of Hormuz began to fade. According to Mettis Global, Brent crude futures rose by 2.48% to $106.91 per barrel, while West Texas Intermediate (WTI) crude futures increased by 1.75% to $94.03 per barrel.

The rally comes after Washington rejected Tehran's ceasefire terms over the weekend. Iranian Foreign Minister Abbas Araghchi had proposed letting ships pass through the strait again and resuming nuclear talks with the US within a week, but only if its demands were met first.

President Donald Trump confirmed to journalists that he had shot down the Iranian plan, as reported by CNBC. The news contradicts earlier statements from President Trump suggesting hostilities would likely wrap up soon after the midterms, followed by a drop in oil prices.