Trump Rejects Iran Truce Proposal, Oil Prices Surge
Oil prices surged more than 3% at Monday's opening after US President Donald Trump rejected Iran's offer of a seven-day truce to reopen the Strait of Hormuz. This move put pressure on hopes of restoring oil flows through the key waterway, causing Brent crude futures to rise toward $107.9 per barrel and US benchmark West Texas Intermediate to climb as high as $94.6.
European natural gas prices at the Dutch TTF Hub started the week with a 1% rise, trading around €72.9 per megawatt-hour ($83). This increase in energy costs continues to weigh on the economic outlook amid elevated US-Iran tensions.
Trump said he expects his envoys to take part in negotiations with Iran in the coming days, but added that Tehran has yet to offer acceptable terms to resolve the ongoing conflict. The US military is actively helping move petroleum shipments through the Strait of Hormuz, which normally handles around a fifth of global energy flows.