Global crude oil prices surged significantly during Monday's trading session after U.S. President Donald Trump flatly rejected a conditional peace proposal put forward by Tehran. The White House's decision dashed market hopes for the reopening of the Strait of Hormuz shipping lane in the near future. Consequently, Brent futures jumped 2.7% to $107.11 per barrel (after hitting an intraday high of $108.83), while the U.S. benchmark WTI rose 3% to $95.20 per barrel.
Trump personally confirmed the official rejection to reporters following an exclusive report by *The Wall Street Journal* revealing that he had ordered his aides to prepare for a resumption of military strikes against Iran immediately after the U.S. midterm elections this November. Although Trump had previously predicted that the seven-month conflict would end diplomatically after the elections, his latest hardline stance suggests that Washington is opting for force over compromise.
The offer rejected by Trump had previously been announced by Iranian Foreign Minister Abbas Araghchi on the sidelines of the UN General Assembly in New York. Tehran proposed a seven-day plan to reopen the Strait of Hormuz and resume nuclear program negotiations, provided the U.S. halted military attacks, lifted naval blockades on commercial ports, ended the economic war, and released seized Iranian reserve assets. The situation in the West Asian conflict zone continues to escalate, with the Saudi-led military coalition confirming the interception of a wave of projectiles and drones launched by Yemen's Houthi group on Saturday. This series of sustained attacks by Tehran's proxies has heightened concerns regarding the risk of sabotage to regional energy infrastructure, thereby complicating any efforts toward a temporary ceasefire.
International energy analysts are now flagging the risk that a phase of open warfare between the U.S. and Iran could erupt again with greater intensity following the November elections. Cornelia Meyer, CEO of Meyer Resources, warned that global energy reserves are currently at critical levels, forcing many nations to tap into emergency inventories to offset the drop in global crude supplies.
