Oil surged 4% after Trump rejected Iran's plan to reopen the Strait of Hormuz

Global crude oil benchmarks experienced sharp upward movements during Monday's trading session following statements from U.S. President Donald Trump rejecting an initiative presented by Iran to reopen maritime passage through the strategic Strait of Hormuz. International benchmark Brent crude rose to $108.48 per barrel, up 4%, while U.S. West Texas Intermediate futures similarly climbed 4% to reach $96.16 per barrel.

The Strait of Hormuz serves as one of the world's most critical maritime chokepoints, handling roughly a fifth of global petroleum consumption. Escalating geopolitical tensions in the Persian Gulf and the breakdown of backchannel negotiations have raised fears of sustained shipping disruptions and extended maritime bottlenecks.

Energy analysts noted that President Trump's immediate dismissal of the Iranian framework signaled Washington's refusal to ease economic sanctions or offer diplomatic concessions in exchange for navigational guarantees. The standoff has cast uncertainty over global crude supply stability heading into the fourth quarter.

Financial markets reacted swiftly to the rising commodity prices, prompting inflationary concerns across consumer economies reliant on imported oil. Central banks and trade bodies are closely watching developments as shipping insurance premiums and tanker freight rates continue to escalate.