Oil Prices Rise More Than 3% After Trump Rejects Iran Ceasefire Offer
NEW YORK: Global crude oil prices rose sharply after US President Donald Trump rejected Iran’s offer of a seven-day ceasefire, renewing concerns among investors about possible disruptions to oil supplies from the region.
Iran had proposed a ceasefire that could have paved the way for the reopening of the Strait of Hormuz, a critical maritime route for global energy shipments. However, Trump’s rejection of the proposal revived concerns about potential disruptions to oil supplies.
During Asian trading, Brent crude rose 3.1% to $107.51 per barrel, while US West Texas Intermediate (WTI) gained 2.1% to $94.32 per barrel.
The increase in crude prices has also raised concerns about renewed global inflationary pressures, as higher energy costs can increase transportation, electricity and production expenses.
Oil prices had temporarily declined last week following Iran’s proposal to reopen the Strait of Hormuz. However, prices moved higher again after the US rejection, with the latest trading data showing Brent crude remaining above $106 per barrel.
The Strait of Hormuz is a major route for global oil shipments, meaning any conflict in the region or disruption to maritime traffic can have a direct impact on international energy markets.
