Global oil prices rose on Monday following comments by U.S. President Donald Trump describing Iran’s response to a proposed peace deal as “unacceptable,” reigniting concerns over global crude supply.
Brent crude futures climbed $1.83, or 1.8%, to $103.12 per barrel, while U.S. West Texas Intermediate (WTI) rose $1.55, or 1.6%, to $96.97 per barrel. Earlier in the trading session, both benchmarks hit intraday highs of $105.99 and $100.37 respectively.
The gains came despite a 6% weekly drop recorded last week, as markets briefly priced in hopes of a possible ceasefire in the ongoing 10-week conflict that could reopen stable oil transit through the Strait of Hormuz, a critical global shipping route.
Analysts remain cautious about the outlook. PVM Oil Associates analyst John Evans said there was little sign of progress, noting that the U.S. and Iran remain far apart despite ongoing back-channel communications. He added that diplomatic developments may hinge on upcoming discussions involving China.
President Xi Jinping is expected to meet Trump in Beijing later this week, where Iran is likely to be a key topic.
In a further warning about supply constraints, Saudi Aramco CEO Amin Nasser said the world has already lost around 1 billion barrels of oil in recent months, stressing that energy markets will need time to stabilize even if flows resume.
Supply concerns have also been reflected in trade flows. Saudi crude exports to China are expected to fall further in June, while tanker movements through the Strait of Hormuz remain disrupted, with several vessels reportedly switching off tracking systems amid security risks in the region.
Meanwhile, shipping data indicated that a Qatari LNG tanker and other crude carriers continue limited passage through the waterway, although uncertainty persists over safety and continuity of shipments.
Financial analysts at JPMorgan Chase project that oil prices could remain in the low $100 range for much of the year, with limited expectation of a quick return to stability even if geopolitical tensions ease.
U.S. shale producer Diamondback Energy has also taken hedging positions, betting on price spreads between Brent and WTI widening amid potential export disruptions.
The Strait of Hormuz remains central to global oil security, and continued uncertainty is expected to keep energy markets volatile in the near term.
