Oil Prices Surge After Trump Rejects Iran Proposal

ISLAMABAD: (Web Desk) – Oil prices climbed sharply in Asian trading on Monday after Donald Trump rejected Iran’s latest conditions for ending the ongoing Middle East conflict, increasing fears of prolonged instability and disruptions to global energy supplies.

The renewed tensions raised concerns over the security of the Strait of Hormuz, a critical shipping route responsible for transporting a significant share of the world’s oil exports.

Trump publicly dismissed Iran’s response to Washington’s peace proposal through a post on Truth Social, calling Tehran’s position “totally unacceptable.” His remarks heightened expectations of continued geopolitical uncertainty in the region.

Iranian President Masoud Pezeshkian responded defiantly, stating that Iran would never surrender under pressure and that negotiations should not be interpreted as retreat or weakness.

Trump Rejects Iran Terms Amid Rising Regional Tensions

Analysts warned that the disagreement between Washington and Tehran could maintain a geopolitical risk premium in global oil markets. Lloyd Chan of MUFG said prolonged disruptions linked to the Strait of Hormuz would continue supporting higher crude prices.

Global stock markets showed mixed performance during Asian trading. Nikkei 225 declined 0.4 percent, while Hang Seng Index slipped 0.34 percent. In contrast, South Korea’s KOSPI index rose strongly, supported by gains in technology shares.

Shares of Nintendo dropped nearly 10 percent in Tokyo after the gaming giant warned of lower annual profits and announced plans to increase the price of its Nintendo Switch 2 console.

Meanwhile, Scott Bessent is scheduled to visit Japan and South Korea before travelling to China for Trump’s upcoming summit with Chinese President Xi Jinping.

Beijing confirmed that the summit between Trump and Xi will take place from Wednesday to Friday. Discussions are expected to include economic relations, regional security, and the ongoing Middle East conflict.

Market figures showed Brent Crude rising nearly 4.8 percent to around $99.95 per barrel, while West Texas Intermediate climbed more than 4 percent to approximately $105.50 per barrel.