Trump Rejects Iranian Peace Plan, Sparking Oil Price Surge

Global oil prices surged more than 3% on Monday after US President Donald Trump rejected an Iranian peace proposal aimed at easing tensions and reopening the Strait of Hormuz. The sudden price rally pushed Brent crude above $107 per barrel, effectively erasing losses recorded during the previous trading session.

The rejection of the Qatari-mediated peace plan, unveiled last week during the United Nations General Assembly in New York, maintains a high-risk premium on global energy supplies. The Strait of Hormuz, a critical maritime chokepoint, has been a persistent flashpoint throughout 2026, disrupting trade and driving prices upward.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies are closely monitoring the situation. While high prices benefit major producers like Saudi Arabia and Russia, they also risk accelerating the global transition toward renewable energy sources and depressing long-term demand.