Oil rises as US-Iran talks stall and Strait of Hormuz remains shut

Oil prices moved higher on Monday after US President Donald Trump rejected a peace proposal from Iran to resolve their ongoing conflict. Brent crude futures rose $1.32 to reach $105.64 a barrel, while US West Texas Intermediate crude went up 70 cents to $93.11 a barrel.

Diplomacy and Demands

Iranian Foreign Minister Abbas Araghchi stated that Tehran remains fully prepared for war to resume, adding that the country would stand firm even if it leads to a doomsday war. Araghchi noted that Iran is still awaiting an official US response through Qatari mediators regarding their peace plan, which proposed reopening the Strait of Hormuz on the sixth day after agreed US steps. US Ambassador to the UN Mike Waltz dismissed the proposal as a cynical attempt to secure sanctions relief and access frozen assets. Meanwhile, a foiled plot against a UK airbase used in strikes on Iran added a new security dimension to the crisis.

Military Claims

The standoff also saw conflicting claims over military hardware in the Strait of Hormuz. IRGC spokesperson Brigadier General Hossein Mohebbi announced that revolutionary guard forces seized a second US underwater vehicle, identifying it as an advanced Mk 18 Mod 2 Kingfish autonomous drone. US officials rejected these claims as posturing born of desperation, insisting that the military retains full control of its drone fleet.

Context

The Strait of Hormuz is a vital global shipping lane for crude oil, making any prolonged closure or military tension in the area a direct driver of international energy price volatility. Major regional producers like Saudi Arabia and the United Arab Emirates rely heavily on maritime stability through these waters to transport oil to world markets.