Oil Prices Surge as Iran–US Talks Stall

(MENAFN) Crude oil prices climbed sharply on Monday, with Brent surpassing $105 per barrel, as markets reacted to stalled negotiations between Iran and the United States and growing concerns over potential disruptions to global energy supply.

Brent crude was trading at $105.55 per barrel in early morning trade, marking an increase of roughly 4.2% from the previous session. Meanwhile, US benchmark West Texas Intermediate (WTI) rose nearly 4.9%, reaching $100.06 per barrel compared to $95.42 previously.

According to reports, the upward pressure on prices was driven by ongoing geopolitical tensions in the Middle East, which have raised fears of prolonged instability affecting global oil flows. Market concerns have also been heightened by risks surrounding the Strait of Hormuz, a critical transit point for global energy shipments.

Israeli Prime Minister Benjamin Netanyahu said the conflict with Iran is ongoing, arguing that key nuclear materials remain in the country. He stated: "I think it accomplished a great deal. But it's not over because there's still nuclear material, enriched uranium, that has to be taken out of Iran," in remarks aired in a televised interview.

His comments contributed to market expectations that regional tensions are unlikely to ease in the near future.

In parallel developments, US President Donald Trump rejected Iran’s response to a recent American proposal aimed at ending the conflict. Posting on his social media platform, he wrote: "I have just read the response from Iran's so-called 'Representatives.' I don't like it -- TOTALLY UNACCEPTABLE!"

This came shortly after Iranian state media reported that Tehran had delivered its response through Pakistani mediators, underscoring ongoing diplomatic exchanges despite rising rhetoric.

Iranian media further reported that its counterproposal includes demands for US compensation, recognition of Iran’s authority over the Strait of Hormuz, the lifting of sanctions, and the release of frozen assets abroad. The proposal was reportedly rejected by Washington due to what Tehran described as excessive conditions.

Analysts say the absence of progress in negotiations is reinforcing expectations that a ceasefire remains uncertain. While global oil prices have recently been tempered by high inventories, reserve releases, and weaker demand, the lack of a diplomatic breakthrough continues to maintain upward pressure and sustain supply risk premiums in energy markets.

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