Trump's Comments Spark Oil Price Surge Amid Hormuz Deal Uncertainty

Oil prices surged nearly 5% on Monday after US President Donald Trump walked back his earlier claims that the US was actively negotiating with Iran over shipping routes through the Strait of Hormuz.

The price increase came as both sides hardened their positions, making a deal to reopen the strait to commercial traffic seem less likely. The deal had collapsed over disagreements on which routes ships could use, with Iran insisting vessels travel through its territorial waters and the US pushing back.

Treasury Secretary Scott Bessent had previously told CNBC that a Hormuz deal with free ship movement could be imminent, leading to a 7% price drop last week. However, no deal was announced, and now the market is pricing in the opposite outcome.