Trump Rejects Iran Proposal, Oil Prices Surge Amid Ongoing Tensions

Oil prices surged on Monday after US President Donald Trump rejected Iran's proposal to open the Strait of Hormuz, citing that Tehran was only proposing an agreement because 'they're losing so badly.'

The rejection came as oil markets were already under pressure due to the ongoing dispute between the US and Iran over the strait. Despite the tensions, Middle East crude exports are running at their highest level since February, with 12.8 million barrels per day being exported this month.

'I reject their proposal…I rejected their deal,' Trump said on Saturday in a phone call with Axios. The president claimed that Iran's offer contained too many demands, including the lifting of sanctions and unfreezing of Iranian assets before negotiations began on a broader agreement.

The US has been tightening its campaign against Iran, dubbed 'Operation Economic Outcast,' which has seen Turkey and Oman suspend incoming flights by Mahan Air. The UAE has also barred Iranian airlines from operating there, while the central bank of the UAE has blocked Iran-related transactions for Bank Melli.