US Rejects Iran Proposal, Oil Prices Soar on Hormuz Concerns

Oil prices surged more than 3% on Monday after the United States rejected Iran's latest proposal to resolve the conflict and reopen the Strait of Hormuz, sparking concerns over crude supplies from the Middle East.

Brent crude oil rose $3.51, or 3.3%, to $109.68 a barrel by 07:57 a.m., while US West Texas Intermediate crude advanced $3.07, or 3.2%, to $98.75 a barrel.

The rejection of Iran's proposal reversed much of Friday's decline, when expectations of an agreement pushed prices lower. Brent had declined $3.43, or 3.1%, on Friday to settle at $106.17 a barrel, while WTI dropped $3.40, or 3.4%, to $95.68.

The Strait of Hormuz remains one of the world's most important energy transportation routes, with roughly one-fifth of global oil consumption moving through it before the conflict. Restrictions on shipping have disrupted normal crude movements and increased transportation costs, forcing producers and traders to explore alternative export routes.