Oil prices climbed sharply during Asian trading on Monday as renewed uncertainty over U.S.-Iran relations raised concerns about the outlook for energy supplies through the Strait of Hormuz.

Brent crude moved above $107 a barrel, while U.S. West Texas Intermediate (WTI) traded around $94. The rise followed reports that U.S. President Donald Trump had rejected Iran’s latest proposal aimed at easing the conflict and restoring shipping through the key waterway. Reuters also reported Brent trading around $107 on Monday as doubts over a near-term U.S.-Iran agreement weighed on markets. 

Iran has proposed reopening the Strait of Hormuz as part of a broader diplomatic arrangement with Washington. Tehran has said the waterway could be reopened within seven days if the United States eases military pressure and lifts its blockade on Iranian ports. Iranian officials have also sought relief from oil sanctions and the release of frozen Iranian assets as part of negotiations.

However, significant differences remain over how any agreement would be implemented. Washington and Tehran have yet to agree on the sequence of concessions, leaving the timing of a potential reopening uncertain.

The Strait of Hormuz remains a major focus for energy markets because roughly one-fifth of global oil and liquefied natural gas supplies passed through the route before the conflict began in February. Disruptions to shipping have therefore kept a substantial geopolitical risk premium embedded in crude prices. 

Tensions elsewhere in the region are adding to concerns. The Saudi-led coalition in Yemen said it intercepted drones and a ballistic missile launched by Houthi forces over the weekend, highlighting the continuing security risks surrounding important Middle Eastern energy and shipping routes. 

For oil markets, attention is now likely to remain on diplomatic developments and signs of whether shipping through Hormuz can return to more normal levels. Until there is clearer progress toward an agreement, uncertainty surrounding regional supply and transportation routes could continue to drive volatility in Brent and WTI prices.

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