Oil Surge as US–Iran Standoff Deepens Hormuz Crisis

By Staff, Agencies

Oil prices jumped after the United States and Iran failed to reach a deal on a US-backed proposal to end the war, while ongoing disruptions in the Strait of Hormuz raised concerns over global energy supplies.

Brent crude rose over 3% to above $104 per barrel, while West Texas Intermediate also climbed, reflecting rising market concern over prolonged instability in West Asia.

The latest surge came as the Strait of Hormuz remains largely inaccessible to normal oil transit, tightening supplies and increasing pressure on global energy markets.

US President Donald Trump on Sunday dismissed Iran’s response to a US proposal for renewed talks as “unacceptable,” lowering expectations for a near-term breakthrough.

Tehran’s reply reportedly called for an immediate end to sanctions and guarantees for free oil exports.

According to sources, Tehran’s response via Pakistani mediators said any deal with Washington must include an immediate end to the war, along with lifting sanctions, unfreezing assets, and removing the US Office of Foreign Assets Control [OFAC] restrictions on oil sales.

In parallel, sources said Tehran sees the economic pressure as part of broader US military and political escalation, while the stalled talks raise concerns that the US-Iran standoff, now in its third month, could further disrupt key energy routes amid the ongoing US-"Israeli" war on Iran.

Analysts say hopes for a rapid reopening of Hormuz had briefly eased market fears, but the latest political impasse has shifted attention back toward supply risks and regional escalation.

Meanwhile, attention is turning to Trump’s Beijing visit, where talks with Xi are expected to focus on Iran and the Strait of Hormuz, with Washington seeking Chinese influence over Tehran despite Beijing’s rejection of US pressure and sanctions.

Energy markets remain under strain, with Saudi Aramco’s CEO warning the crisis has removed about one billion barrels from global supply over the past two months and recovery will take time.

In addition, shipping disruptions in the Strait of Hormuz, including tankers disabling tracking systems, continue to heighten fears of a prolonged energy shock.