Oil Prices Surge Past $105 as Middle East Crisis Deepens Over Iran–US Standoff

Global oil prices climbed sharply on Monday as renewed tensions between the United States and Iran raised fears of supply disruptions from the Middle East. The rally came after U.S. President Donald Trump rejected Iran’s latest terms aimed at ending the ongoing conflict, deepening uncertainty in global energy markets.

Benchmark crude prices reacted immediately to the geopolitical tension. Brent crude futures surged to a high of $105.99 per barrel before settling slightly lower at $103.99, marking an increase of $2.70 or 2.67% from the previous session. Similarly, U.S. West Texas Intermediate (WTI) rose to $100.37 per barrel before easing to $97.66, up $2.24 or 2.35%.

In a strongly worded statement, President Trump said: “I have just read the response from Iran’s so-called ‘Representatives.’ I don’t like it — TOTALLY UNACCEPTABLE!” His remarks signaled a firm rejection of Tehran’s counterproposals, further dampening hopes for a near-term diplomatic breakthrough.

On its part, Iranian officials pushed back against Washington’s position. A spokesperson from Iran’s Foreign Ministry, Esmaeil Baqaei, said the country was not demanding concessions but insisting on what it considers its legitimate rights. He added that Iran is seeking an end to the war, the lifting of the U.S. naval blockade, and the release of frozen Iranian assets held in foreign banks. The escalating rhetoric has raised concerns over potential disruptions in the strategic Strait of Hormuz, a critical global oil shipping route.

Market analysts warned that the standoff could keep oil prices elevated for longer. Lloyd Chan of Mitsubishi UFJ Financial Group noted that the widening gap between both sides signals prolonged uncertainty rather than quick de-escalation. He added that the situation is likely to maintain a persistent geopolitical risk premium in oil markets as tensions around the Strait of Hormuz continue.

source: newtelegraph