Trump Rejects Iran Proposal, Oil Prices Rise Amid Ongoing Tensions
The price of oil has risen as hopes for a quick reopening of the Strait of Hormuz have faded. Iran has stated that it will not soften its conditions to allow traffic through the waterway, despite President Donald Trump's proposal to do so.
Trump rejected Iran's proposal on Sunday, saying that Tehran had 'overplayed its hand' and that Washington might have agreed to their terms a year ago. The US president also stated that he expects negotiations to resume this week.
Brent crude rose to around $107 a barrel, while West Texas Intermediate climbed above $94 per barrel. However, experts warn that oil's gains may be muted, as the market was not expecting the strait to reopen in seven days.
The Strait of Hormuz is a crucial waterway for global energy supplies, carrying about a fifth of the world's crude and liquefied natural gas before the start of the war. With only 15 million barrels of Iranian crude remaining on the water, Tehran faces pressure to reach a deal.