Brent Tops $103 as Trump Rejects Iran Counteroffer

CNBC reported Monday that Brent crude oil surged past $103 a barrel after President Donald Trump dismissed Iran’s latest diplomatic counteroffer. Israeli Prime Minister Benjamin Netanyahu simultaneously signaled that military operations against Iran were far from finished.

Oil Prices Surge on Diplomatic Breakdown

International benchmark Brent crude futures climbed more than 2% to around $103.93 per barrel Monday morning. U.S. West Texas Intermediate futures for June delivery rose a similar margin, reaching approximately $97.88. Both benchmarks have now gained roughly 40% since the U.S. and Israeli-led campaign against Iran began in late February.

Trump posted a blunt rejection of Iran’s negotiating response, calling it “totally unacceptable.” The statement crushed any near-term hopes of a ceasefire or energy route reopening.

Also Read: What Is the Strait of Hormuz and Why Does It Matter for Oil?

Netanyahu Outlines Unfinished Business With Iran

Speaking in a CBS interview on Sunday, Netanyahu listed several outstanding issues blocking any resolution. He cited enriched uranium stockpiles, active enrichment facilities, Iranian-backed proxy forces, and ballistic missile programs. When asked how nuclear material would be removed, his answer was direct and unambiguous. “You go in, and you take it out,” he said, according to CNBC’s report.

His comments reinforced trader expectations that the Strait of Hormuz, a critical artery for global crude exports, could remain partially or fully restricted well beyond current projections.

Background: Markets Have Absorbed Shocks So Far

Since the conflict escalated in late February, oil markets have been partly buffered from even steeper price increases. Analysts at Citi noted in a research note that elevated inventory levels, releases from strategic petroleum reserves, softer demand in emerging markets, and occasional signals of possible de-escalation have all helped contain prices. Even so, Citi maintained that risks remain skewed firmly to the upside. The bank flagged that Iran holds considerable leverage over the timing of any Hormuz reopening agreement, estimating a deal around end-May but cautioning that timeline could easily slip.

‘Demand Destruction’ Warning From Commodities CEO

Felipe Elink Schuurman, CEO of Sparta Commodities, drew a stark comparison to 2020 pandemic-era oil demand losses. He told CNBC that the current supply disruption roughly mirrors the nine million barrels per day of demand lost during COVID-19. He warned that wealthier nations would absorb higher product prices, while poorer countries could face a humanitarian crisis. Europe, he said, risked an economic shock, and the U.S. a political one.

Read Next: Trump’s Iran Policy Is Reshaping Global Energy Markets