Brent crude jumps 3% as Trump rejects Iran's Hormuz proposal

Brent crude oil prices rose more than 3 percent on Monday after US President Donald Trump rejected an Iranian proposal to halt hostilities for seven days and reopen the strategic Strait of Hormuz. The price reached $107.51 per barrel in Asian afternoon trading, a 3.1 percent increase, while West Texas Intermediate rose 2.1 percent to $94.32, intensifying inflationary pressures. Tehran presented the plan to the United Nations General Assembly last week. The vital waterway for global oil supplies is central to the US-Iran conflict, which has reached a stalemate after nearly seven months. Trump told reporters at the White House, "I reject their proposal," but said Sunday he expects negotiations with Iran to resume next week. Analyst Stephen Innes of Qinteq Intel noted renewed Middle East tensions after the rejection, with oil prices rising and Asian stocks falling, suggesting the brief market relief seen Friday was only a pause. He added that markets still see a possibility of all parties eventually returning to negotiations.