Oil jumps 4% as Trump rejects Iran peace response

Oil prices jumped more than 4 percent on Monday morning after US President Donald Trump said Iran’s response to the American proposal was “totally unacceptable” and the Strait of Hormuz remained largely shut.

Brent crude futures climbed $4.4 or 4.3 percent to $105.6 a barrel at 04:08 GMT. US West Texas Intermediate was at $99.94 a barrel, up $4.5 or 4.7 percent.

Last week, both benchmarks registered 6 percent weekly losses on hopes of a possible end to the conflict and the opening of the Strait of Hormuz.

“I have just read the response from Iran’s so-called “Representatives.” I don’t like it — Totally Unacceptable!” Trump said in a post on Truth Social.

“The oil market continues to trade like a geopolitical headline machine, with prices swinging sharply based on every comment, rejection, or warning coming from Washington and Tehran,” Reuters reported Priyanka Sachdeva, senior market analyst at Phillip Nova, as saying.

Trump is expected to meet Chinese President Xi Jinping in Beijing on Wednesday and discuss Iran, among other topics.

Further reading:

• Iran formalises Hormuz ship approvals and transit tolls
• Chabahar fails as ‘Hormuz workaround’ for India and China
• Fujairah and Khor Fakkan: trade lifeline on UAE’s east coast

Saudi Aramco CEO Amin Nasser on Sunday said the world has lost about 1 billion barrels of oil during the past two months and energy markets, rattled by the Iran war, will take time to stabilise even if flows resume.

Two tankers carrying crude oil exited the Strait of Hormuz last week with their trackers switched off to avoid Iranian attacks, Reuters reported, citing Kpler shipping data.

United Kingdom Maritime Trade Operations (UKMTO) said that a bulk carrier was struck by an unknown projectile off the coast of Qatar on Sunday, resulting in a small fire.

Meanwhile, gold prices fell following Trump’s rejection of Iran’s peace proposal. Spot gold slipped 0.2 percent to $4,684 per ounce, as of 04:08 GMT. However, silver was up 1.5 percent to $80.59 per ounce.

The Saudi stock exchange closed 8 percent higher on Sunday, driven by bellwether Aramco rising 0.8 percent after profits hit a three-year high.

The Dubai and Abu Dhabi stock exchanges will open for trading today.