Oil Jumps as Netanyahu Vows Iran Conflict Is Unfinished and Trump Rejects Ceasefire Offer

CNBC reported Monday that oil prices Iran conflict fears drove a sharp rally in crude markets, with Israeli Prime Minister Benjamin Netanyahu declaring the war with Iran far from finished while U.S. President Donald Trump publicly dismissed Tehran’s latest peace overture.

Crude Benchmarks Post Steep Gains

Brent crude futures for July delivery climbed more than 3% to reach $104.49 per barrel. U.S. West Texas Intermediate futures for June advanced a similar margin to settle around $95.42 per barrel. Both moves reflect renewed anxiety over energy supply routes through the Persian Gulf region.

Trump added further pressure to sentiment when he publicly rejected Iran’s counteroffer to end hostilities. He described the response as “totally unacceptable” in a social media post, closing off a diplomatic off-ramp markets had briefly anticipated.

Netanyahu Signals More Military Action Ahead

In a televised interview, Netanyahu outlined several conditions he said must still be met before any resolution is possible. He cited unresolved questions around enriched uranium removal, the dismantling of nuclear enrichment facilities, Iranian-backed proxy forces, and continued ballistic missile development. When pressed on how nuclear material would be extracted, the prime minister indicated a forcible entry option remained on the table. His remarks significantly dampened hopes that the conflict would wind down near-term.

Background: Hormuz Remains the Pressure Point

The Strait of Hormuz sits at the centre of global crude supply anxiety. Roughly one-fifth of the world’s seaborne oil passes through the narrow waterway, and Iran has repeatedly signalled it retains leverage over the strait’s access. Markets have been partially insulated from the worst-case scenario by elevated inventories, periodic strategic petroleum reserve releases from consuming nations, and softer demand signals from several developing economies.

Also Read: What Closing the Strait of Hormuz Would Mean for Global Energy

Citi Warns Risks Remain Tilted Higher

Analysts at Citi said in a note that crude markets could face additional upward pressure if negotiations fail to produce a formal agreement. The bank maintained that Iran controls the timing and terms of any potential Hormuz reopening. Citi’s base case assumed a deal that restores the waterway around the end of May. However, the analysts stressed the risks lean toward that timeline slipping or the reopening being only partial, meaning supply disruptions could persist longer than markets currently price in.

Also Read: Citi’s Latest Commodities Outlook

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