International
oi-Ashish Rana
Global oil prices climbed sharply on Monday after US President Donald Trump rejected Iran’s latest response to Washington’s ceasefire proposal, raising fears that the ongoing Middle East conflict could continue without a breakthrough. The development also kept the strategically crucial Strait of Hormuz effectively closed, adding to concerns over global crude supplies and shipping disruptions.
Global oil prices rallied as US President Donald Trump rejected Iran’s response to a ceasefire proposal, raising fears of continued conflict and supply disruptions through the Strait of Hormuz. WTI crude neared $100 and Brent crude hit $105 per barrel, while gold prices declined amid the news.
WTI crude futures jumped 4 per cent to move back near the $100 per barrel mark, while Brent crude surged to around $105 per barrel as markets reacted to the collapse in negotiations. At the same time, gold prices slipped after optimism around a possible peace resolution faded.
Oil Prices Rally As Hormuz Crisis Deepens
The latest escalation in tensions rattled global commodity markets, especially crude oil, as investors feared prolonged disruption in the Strait of Hormuz, one of the world’s most important oil transit routes.
Brent crude touched the $105 per barrel level, while WTI crude futures climbed close to $100 per barrel again after Trump publicly rejected Tehran’s response to the US peace proposal.
The Strait of Hormuz has remained effectively shut amid the ongoing 10-week conflict, impacting shipping activity and creating uncertainty over energy supplies worldwide.
Trump Calls Iran’s Reply ‘Totally Unacceptable’
Posting on Truth Social, Trump strongly criticised Iran’s response to the latest US diplomatic outreach aimed at restarting ceasefire talks.
“I have just read the response from Iran’s so-called ‘Representatives.’ I don’t like it – TOTALLY UNACCEPTABLE!” Trump wrote in the post.
The US President did not specify which parts of Iran’s proposal had been rejected. However, the statement significantly reduced hopes of an immediate breakthrough in negotiations between the two sides.
The US proposal had been floated in recent days in an attempt to de-escalate tensions and end the conflict that has already disrupted global shipping routes and pushed oil prices higher.
Iran’s Demands Become Major Sticking Point
According to reports from Iranian state media, Tehran’s response included several major demands before any ceasefire agreement could move forward.
These reportedly included compensation for war damages, recognition of Iranian sovereignty over the Strait of Hormuz, lifting of sanctions and guarantees against future attacks.
The demands appear to have become a key obstacle in the negotiations, with Washington showing little willingness to accept Tehran’s conditions.
Gold Falls, Gift Nifty Trades Lower
While oil prices rallied, gold prices moved lower following the setback in peace talks. Gold reportedly slipped to $4,700 per ounce on Monday, erasing gains recorded over the past week when hopes of a diplomatic resolution had improved investor sentiment.
Meanwhile, Gift Nifty indicated a weak opening for Indian equity markets. At around 7:14 AM IST, Gift Nifty was trading 193 points lower, or 0.80 per cent down, at 24,047 after opening at 24,280.
The decline reflected growing concerns among investors over rising geopolitical tensions, volatile crude prices and uncertainty surrounding the Middle East conflict.
