Brent Crude Tops $105 as Trump Rejects Iran Peace Counteroffer

CNBC reported Monday that the Brent crude oil price surged above $105 a barrel after Israeli Prime Minister Benjamin Netanyahu declared the war with Iran unfinished and U.S. President Donald Trump publicly rejected Tehran’s counterproposal to end the conflict.

Oil Prices Post Sharp Monday Gains

International benchmark Brent crude climbed 4.2% to $105.49 per barrel in early trading. U.S. West Texas Intermediate futures for June delivery rose 4.8% to reach $100.04. Both benchmarks have now gained roughly 40% since the U.S. and Israeli military campaign against Iran began on February 28.

The moves came after Netanyahu, speaking ahead of a CBS interview, said outstanding issues remain before any ceasefire is possible. He cited enriched uranium stocks, active enrichment facilities, Iranian proxy networks, and ballistic missile programmes as unresolved matters. Asked how nuclear material would be removed, he replied that forces would simply enter and extract it.

Trump Shuts Door on Iran Counteroffer

Trump reinforced the bearish peace outlook by publicly dismissing Iran’s latest negotiating response. He called the terms “totally unacceptable,” cutting short any optimism that back-channel diplomacy was gaining traction. The rejection removed a key near-term ceiling on prices, leaving traders focused on supply disruption risk.

Background: Hormuz Closure Has Tightened Global Supply

The Strait of Hormuz, through which roughly 20% of globally traded oil passes, has faced intermittent disruption since the conflict escalated in late February. Analysts at Citi wrote in their latest oil note that markets have so far been cushioned by elevated inventories, strategic reserve releases, and softer demand from developing economies. Even so, Citi maintained that price risks remain skewed higher. The bank said it expects a deal to reopen the strait around the end of May but flagged a rising probability that reopening is delayed or only partial.

Also Read: Fed Holds Rates Steady as Inflation Concerns Persist

Analysts Warn of Humanitarian and Economic Fallout

Felipe Elink Schuurman, CEO of Sparta Commodities, drew a stark parallel to the pandemic demand shock of 2020, when global consumption fell by roughly nine million barrels per day. He told CNBC’s Squawk Box Europe that a supply loss of similar magnitude is now unfolding and that markets must adjust through demand destruction. Schuurman said wealthier nations would absorb higher costs on refined products, while poorer countries face a humanitarian crisis, Europe confronts an economic contraction, and the United States risks serious political strain.

Citi echoed the warning, noting that Iran retains considerable leverage over the timing and scope of any Hormuz agreement.

Read Next: Gold Holds Near Record Highs as Safe-Haven Demand Builds