Oil rises over 2% as Iran holds firm on Hormuz reopening terms

Oil prices surged more than 2% on Monday as Iran refused to compromise on reopening the Strait of Hormuz, following President Donald Trump's rejection of Tehran's conditions. Brent Oil Futures for November expired at $107.08 per barrel, up 2.7%, while West Texas Intermediate (WTI) crude futures rose 2.4% to $94.66 per barrel. Brent futures were up about 18% for the month, including Monday's gains.

Iran's proposal would reopen the strait within seven days, contingent upon the lifting of the US naval blockade, easing military pressure, removal of sanctions on Iranian oil sales, and a ceasefire. Iran maintains commitment to these terms despite Trump's rejection. Trump hinted at resuming negotiations with Iran this week, according to an Axios report.

Qatar has been mediating between the two sides. The Strait, which carries about a fifth of global oil and liquefied natural gas supplies, has seen a significant drop in shipping activity. Iran-backed Houthi forces in Yemen have intensified attacks on Saudi Arabia and Red Sea shipping. Saudi Arabia intercepted ballistic missiles and drones launched by the Houthis.

Despite disruption, some oil is still passing through the strait, with over 20 million barrels reportedly transiting over the weekend. The market is also monitoring refined-product supplies closely, as diesel prices in Europe and the US hit record highs due to Middle East and Russian export restrictions tightening fuel markets.