Brent Crude Tops $103 as Trump Rejects Iran Peace Counteroffer

CNBC reported Monday that Brent crude oil prices broke above $103 a barrel after U.S. President Donald Trump flatly rejected Iran’s counteroffer to end hostilities, while Israeli Prime Minister Benjamin Netanyahu signaled the war was far from finished.

Brent crude oil price climbed 2.3% to $103.68 per barrel by early Monday morning in New York. U.S. West Texas Intermediate futures gained 2.4%, reaching $97.69 per barrel. Both benchmarks have now surged roughly 40% since the U.S. and Israeli military campaign against Iran began in late February.

Trump Calls Iran Response Totally Unacceptable

Trump publicly rejected Tehran’s proposed terms over the weekend, posting that he found the response from Iran’s representatives entirely unacceptable. The blunt dismissal ended a brief period of cautious optimism that a negotiated pause in fighting might emerge soon.

Netanyahu reinforced that pessimism in a CBS interview recorded Sunday. He laid out a list of outstanding demands, including the removal of enriched uranium from Iranian territory, the dismantling of enrichment facilities, and the elimination of Iranian-backed proxy forces. When asked how that nuclear material would be retrieved, he said forces would simply “go in and take it out.”

A Market Already Under Pressure

The conflict, which began February 28, has squeezed global oil supply significantly. Iran retains effective leverage over access to the Strait of Hormuz, one of the world’s most critical energy chokepoints.

Citi analysts noted in a recent oil report that prices have been partially cushioned by elevated inventories, strategic reserve releases, and softer demand in emerging markets. Even so, the bank kept its risk outlook tilted to the upside. Citi flagged that a deal to reopen the Strait is expected around end-May but warned that delays or only partial reopenings remain a real possibility, meaning disruptions could persist longer than markets currently price.

‘Demand Destruction’ Already Arriving

Felipe Elink Schuurman, CEO of Sparta Commodities, drew a stark parallel with the 2020 pandemic shock. He told CNBC’s Squawk Box Europe that the current supply loss is roughly comparable to the nine million barrels per day of demand that evaporated during COVID-19. The market, he argued, will eventually have to destroy enough demand to rebalance.

Schuurman cautioned that the pain will not be shared equally. Wealthier nations will absorb higher refined-product costs. Poorer countries face a humanitarian crisis. Europe risks an economic contraction. And the United States, he suggested, faces a political reckoning as fuel bills rise for ordinary consumers.

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