Oil Prices Rise on Supply Disruptions Concerns Amid Ongoing Strait of Hormuz Tensions

Oil prices ticked higher on Monday as concerns about supply disruptions persisted. US President Donald Trump rejected Iran's proposal to reopen the Strait of Hormuz, which had been a major point of contention between the two nations.

The rejection sparked an initial jump in oil prices, with Brent futures rising by 96 cents or 0.9 percent to settle at $105.28 a barrel. However, prices pared gains as it became clear that Qatari mediators would hold talks with both Iran and the US in hopes of finding a peace deal.

The talks are expected to focus on an amended version of Iran's seven-day proposal, which was presented last week during the United Nations General Assembly. Over the weekend, Iran emphasized the need for diplomacy to resolve its conflict with the US and Israel.