Noida, Sep 28 (APAC Media): Crude Oil prices climbed nearly 2% on Monday after Iran said it would not ease its conditions for reopening the Strait of Hormuz, adding to uncertainty over when traffic through the critical energy corridor could return to normal.
Brent crude futures for November delivery rose 1.86% to $99.30 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 1.92% to $94.20 a barrel.
The latest price move came after U.S. President Donald Trump rejected a proposal from Tehran that would have allowed the Strait of Hormuz to reopen within seven days while broader negotiations continued.
Under the proposal, Iran would require Washington to lift its naval blockade, reduce military pressure, remove sanctions affecting Iranian oil sales and agree to a ceasefire.
Iran has said it remains committed to those conditions despite Trump’s rejection.
Trump has nevertheless indicated that negotiations with Iran could resume this week, according to an Axios report. Qatar has been working to facilitate dialogue between the two sides as efforts continue to revive talks.
The Strait of Hormuz remains a major concern for energy markets. Before the conflict began, roughly one-fifth of global oil and liquefied natural gas supplies passed through the waterway. A sharp decline in shipping activity since then has raised concerns about potential supply shortages.
Iran is also increasingly shifting trade from maritime routes to land crossings as restrictions affecting its southern ports disrupt imports. The pressure has been particularly visible at the country’s main border crossing with Turkiye, where truck queues have stretched for kilometres and delays have reportedly lasted for days or even weeks.
Increased attacks by Iran-backed Houthi forces in Yemen against Saudi Arabia and commercial shipping in the Red Sea have compounded supply concerns.
“Two ballistic missiles and two drones launched by Houthi forces were intercepted on Saturday, while six missiles were intercepted several days earlier after being directed toward areas including Taif and Yanbu,” Saudi Arabia said in a statement.
The disruptions have forced Gulf oil producers to explore alternative routes for transporting crude.
However, there were signs that oil shipments through the Strait of Hormuz had picked up. According to Axios, Trump said that more than 20 million barrels of oil had transited the key waterway over the weekend.
Markets are also closely monitoring refined-product supplies. Diesel prices in Europe and the United States have risen to record levels as disruptions to crude and refined-product exports from the Middle East and Russia have tightened fuel markets.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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