West Texas Intermediate (WTI) crude oil prices climbed above $95.50, trading around $95.70 during Asian hours on Monday, following a nearly 3% decline in the previous trading session [1]. The rebound was triggered after US President Donald Trump publicly rejected Iran’s latest proposal to resolve the ongoing 10-week conflict, which has kept the critical Strait of Hormuz effectively closed [1]. Trump labeled Tehran’s response as “TOTALLY UNACCEPTABLE” on Truth Social, referencing Iran’s offer to move part of its highly enriched uranium stockpile to a third country while refusing to dismantle its nuclear facilities [1]. Trump is scheduled to visit Beijing on Wednesday, where discussions with Chinese President Xi Jinping are expected to include the Iran situation [1].
Regional tensions escalated further as drone strikes targeted a cargo ship near Qatar in the Persian Gulf, and both the UAE and Kuwait reported intercepting hostile drones, raising fears that the fragile ceasefire established in early April could collapse [1]. Saudi Aramco CEO Amin Nasser stated that the world has lost nearly 1 billion barrels of oil over the past two months, warning that energy markets would require time to stabilize even if supply flows resume [1].
Shipping data from Kpler indicated that two additional crude-laden tankers traversed the Strait of Hormuz last week with their tracking systems turned off, a move interpreted as an attempt to avoid potential Iranian attacks [1]. The International Energy Agency (IEA) described the ongoing disruption as the largest supply shock ever recorded, with the closure of the Strait significantly impacting global supplies of crude oil, natural gas, and refined fuels [1].
No forward-looking analyst opinions were provided in the article, but the combination of geopolitical tensions, supply disruptions, and strong statements from key stakeholders has contributed to heightened volatility and upward pressure on oil prices [1].
CONCLUSION
WTI oil prices surged above $95.50 as geopolitical tensions in the Gulf intensified and President Trump rejected Iran’s proposal to resolve the conflict, keeping the Strait of Hormuz closed. The ongoing supply shock, described by the IEA as the largest ever, and warnings from Saudi Aramco’s CEO suggest that market volatility and elevated prices may persist until stability returns.