Oil prices rose sharply on Monday after US President Donald Trump described Iran's response to a US proposal as "unacceptable", which heightened concerns about crude supplies amid ongoing difficulties in the Strait of Hormuz, reports "Reuters".
Brent futures rose by $4.04, or 3.99%, to $105.33 a barrel. U.S. West Texas Intermediate (WTI) crude oil futures fell about 6% last week on hopes of a quick end to the 10-week conflict, allowing traffic through the Strait of Hormuz to resume. "The oil market continues to react like a geopolitical headline machine, with prices moving sharply with every statement, denial or warning from Washington and Tehran," said Priyanka Sachdeva, senior market analyst at Phillip Nova. Donald Trump is expected to arrive in Beijing on Wednesday, where U.S. officials say he will discuss Iran with Chinese President Xi Jinping. Markets are closely watching whether China can use its influence over Iran to help broker a comprehensive deal. truce and restoration of shipping through the Strait of Hormuz.
Saudi Aramco Chief Executive Amin Nasser said on Sunday that the world has lost about 1 billion barrels of oil in the past two months and that energy markets will need time to stabilize even if supplies are restored.
Kpler data shows that three more oil tankers passed through the Strait of Hormuz last week with tracking systems turned off to avoid possible Iranian attacks.
ANZ analysts predict that even if the sharp oil shock subsides towards the end of 2026, the risk of further disruptions in the Strait of Hormuz, low reserves and weak international coordination will continue to maintain a high geopolitical premium in prices.
According to them, Brent is likely to remain above $90 a barrel in 2026 and between $80 and $85 in 2027
Meanwhile, official data showed that China's oil imports fell in April to their lowest level in nearly four years due to supply disruptions.