Brent Crude Tops $105 as Trump Rejects Iran Peace Offer

CNBC reported Monday that Brent crude futures surged past $105 per barrel after U.S. President Donald Trump flatly rejected a counterproposal from Iranian negotiators. Israeli Prime Minister Benjamin Netanyahu simultaneously declared the war with Iran unfinished, rattling energy markets at the open of the new trading week.

Oil Prices Spike on Dual Diplomatic Blow

Brent crude futures climbed 4.2% to $105.49 per barrel as of early Monday morning U.S. time. WTI futures with June delivery rose 4.8% to break through the $100 threshold, settling near $100.04. Both benchmarks have now gained roughly 40% since the U.S. and Israeli military campaign against Iran began on February 28.

Trump posted a blunt public rejection of Tehran’s response to ceasefire terms, calling it “totally unacceptable.” The statement eliminated near-term hopes for a negotiated settlement that could reopen critical shipping corridors.

Netanyahu Outlines Remaining Demands

Speaking in a CBS interview set to air Sunday, Netanyahu laid out a list of conditions that Iran still must meet before any resolution is possible. He pointed to stockpiles of enriched uranium, active enrichment facilities, Iranian-backed proxy forces, and ongoing ballistic missile development. When asked how nuclear material would ultimately be removed, Netanyahu’s answer was direct and stark. “You go in, and you take it out,” he said, per CNBC.

The remarks underscored how far the two sides remain from any workable framework.

Background: Hormuz Closure Has Squeezed Supply Since February

The Strait of Hormuz, through which roughly a fifth of the world’s traded oil flows, has faced severe disruption since the conflict began. Analysts at Citi noted in a fresh research note that crude markets have so far been partially cushioned by elevated inventories, strategic reserve releases from consuming nations, and softer demand across developing economies. Citi analysts maintained that the risk balance for prices remains tilted upward. They projected a deal to partially reopen Hormuz by late May but warned that timeline could easily slip.

Demand Destruction Looms for Poorer Nations

Felipe Elink Schuurman, CEO and co-founder of Sparta Commodities, told CNBC’s Squawk Box Europe that the supply shock mirrors the demand destruction seen during the COVID-19 pandemic in 2020. He estimated the market was absorbing a loss of roughly nine million barrels per day. Schuurman warned the pain would not be distributed evenly. Wealthier nations would absorb higher costs at the pump. Developing economies, however, face a genuine humanitarian threat as refined product prices approach the $200-per-barrel range on a product basis.

Europe faces a deepening economic squeeze, while the United States confronts growing political pressure as consumers feel the strain at fuel stations and in household energy bills.

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