Global oil prices surged on Monday after U.S. President Donald Trump described Iran’s response to a Washington proposal as “unacceptable.” The statement increased fears about oil supplies as tensions around the Strait of Hormuz continued disrupting energy markets.
Brent crude futures rose by $4.16, reaching $105.45 per barrel during early trading. U.S. West Texas Intermediate crude also climbed sharply, gaining $4.38 to trade at $99.80 per barrel.
The market rally followed heavy losses recorded last week. Both major oil contracts had previously dropped nearly six percent because investors expected the regional conflict to ease and shipping activity through the Strait of Hormuz to resume.
Traders now fear prolonged instability could tighten global energy supplies further. Shipping disruptions in the Gulf region continue affecting oil transportation and raising uncertainty across international markets.
Analysts said oil traders remain highly sensitive to political statements from Washington and Tehran. Priyanka Sachdeva, senior market analyst at Phillip Nova, said markets continue reacting sharply to every major diplomatic development.
Global oil prices also gained support from ongoing concerns about the Strait of Hormuz. The strategic waterway remains one of the world’s most important oil shipping routes. Any disruption there can immediately affect global energy markets.
President Trump is expected to visit Beijing later this week for meetings with Chinese President Xi Jinping. U.S. officials said discussions may include the Iran crisis and efforts to reduce tensions in the region.
Market analysts believe China could play an important diplomatic role in pushing for a ceasefire and restoring safe shipping through Hormuz. Investors continue monitoring developments closely as geopolitical risks remain elevated.
Saudi Aramco CEO Amin Nasser warned that the world lost nearly one billion barrels of oil during the past two months. He added that energy markets may require significant time to stabilize even if shipping operations fully resume.
Shipping data also revealed that some oil tankers recently crossed the Strait of Hormuz with tracking systems switched off. Reports suggested vessel operators used those measures to avoid possible attacks during regional tensions.
Global oil prices may remain elevated for an extended period, according to analysts at ING. The bank expects Brent crude to stay above $90 per barrel throughout 2026 because of geopolitical risks and lower global inventories.
Experts also predict oil prices could remain between $80 and $85 per barrel into 2027. Stronger demand growth and slow inventory rebuilding may continue supporting energy markets in the coming years.