Oil prices rose more than 1 % on Monday after U.S. President Donald Trump rejected a peace proposal from Iran aimed at ending the ongoing conflict.
The Iranian proposal, which had been presented to the United States in an effort to reduce tensions, was turned down by the Trump administration, prompting a swift reaction in global markets.
Market participants reacted quickly to the news, with Brent crude and U.S. West Texas Intermediate (WTI) futures both posting gains as traders reassessed the risk profile of the region.
Oil traders noted that the rejection of the proposal could prolong uncertainty in the Strait of Hormuz, a key chokepoint for global oil shipments.
Analysts point out that oil prices are highly sensitive to geopolitical developments, and any shift in diplomatic engagement can lead to rapid market movements.
<small>Source: CNBC — read the original story there.</small>