Global oil prices have climbed sharply following US President Donald Trump’s dismissal of an Iranian offer to reopen the Strait of Hormuz within a week. Brent crude, the key international benchmark, jumped more than 3 percent on Monday, touching nearly $108 per barrel during Asian trading sessions.
By shortly before 08:00 GMT, November Brent futures were trading at $107.35 a barrel. The price surge comes amid heightened uncertainty in financial markets across the Asia-Pacific region. While Wall Street closed the previous Friday with a 0.5 percent gain for the S&P 500, regional markets showed mixed results. Japan’s Nikkei 225 fell 0.73 percent, and South Korea’s Kospi dropped 2.70 percent. Conversely, Hong Kong’s Hang Seng Index rose 0.54 percent, and Australia’s S&P/ASX 200 saw a modest increase of 0.17 percent.
The market turbulence followed President Trump’s statement on Saturday that Tehran’s latest proposal to end the ongoing conflict between the US and Israel against Iran was unacceptable. The proposal, presented by Iran at the United Nations General Assembly on Friday, outlined a deal where Washington would release frozen Iranian assets, lift sanctions, and terminate its naval blockade of Iranian ports. In return, Iran agreed to reopen the strategic waterway and resume nuclear negotiations within seven days.
The Strait of Hormuz serves as a critical energy artery, linking the Persian Gulf to the Gulf of Oman and the Arabian Sea. Prior to the US and Israeli military strikes on Iran in late February, approximately one-fifth of the world’s oil supply passed through this chokepoint. However, commercial shipping has decreased significantly since the conflict began, driven by numerous attacks on vessels in the Gulf, most of which have been attributed to Iran or allied militias.
According to maritime intelligence platform MarineTraffic, vessel transits through the strait increased slightly to 132 between September 21 and 27, up from 116 the previous week. This figure remains well below pre-war levels, which averaged roughly 130 crossings daily.
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