Trump Rejects Iranian Proposal, Oil Prices Rise on Strait of Hormuz Uncertainty

Oil prices rose on Monday as uncertainty over the Strait of Hormuz persisted after US President Donald Trump rejected an Iranian proposal aimed at ending the conflict and reopening the waterway. The move kept a geopolitical premium in crude prices, despite recovering Middle East exports.

Brent futures climbed 2.86% to $107.30 per barrel, while WTI rose 3.04% to $95.22 after Trump's rejection of the Iranian plan over the weekend.

Iran presented its proposal during the UN General Assembly in New York and transmitted it to Washington through Qatari mediators. The plan sought to reopen the Strait of Hormuz and restart negotiations within seven days if several Iranian conditions were met, but Trump rejected it on Saturday.

The diplomatic impasse has kept a premium in crude prices due to concerns over supply through one of the world's most important energy corridors. The waterway carries roughly one-fifth to one-quarter of global oil flows, making disruption there particularly significant for international energy markets.