Oil Prices Surge as Iran-US Tensions Remain High

Oil prices surged nearly 3% on Monday as tensions between Iran and the US remained high over the reopening of the Strait of Hormuz, a critical oil shipping route. According to Investing.com, Brent futures rose 2.8% to $107.27 per barrel, while WTI climbed nearly 2% to $94.13 per barrel.

Iran has reiterated its conditions for reopening the strait within seven days, including the lifting of US naval blockade and sanctions on Iranian oil sales. Despite US President Donald Trump's rejection of Tehran's proposal, Iran remains committed to these conditions. Trump expects negotiations with Iran to resume this week, according to an Axios report.

The disruption in the Strait of Hormuz has caused a sharp reduction in shipping activity, with about a fifth of global oil and liquefied natural gas supplies affected. The market is also watching refined-product supplies closely, as diesel prices in Europe and the US have reached record highs due to disruptions in oil and product exports from the Middle East and Russia.