Iran’s seven-day reopening plan for the Hormuz Strait was rejected by Trump; Brent crude oil rises above $106

According to Zhihong Finance APP, Iran is insisting on a seven-day proposal to reopen the Strait of Hormuz, but the proposal has been rejected by U.S. President Trump, which could further delay the reopening of this critical waterway. Brent crude oil has risen above $106 per barrel, while U.S. WTI crude is approaching $94 per barrel.

In an interview with Axios on Sunday, Trump stated that the conditions Iran proposed might have been acceptable to Washington about a year ago, but now Tehran is overestimating its leverage. According to Axios, Trump expects negotiations to resume this week.

Last week, oil prices fluctuated significantly due to mixed diplomatic signals, resumed Middle East supply flows, and uncertainty over whether the U.S. would take measures to curb record diesel prices. Trump said Washington is "very seriously" studying relevant measures. As the conflict between the U.S. and Iran enters its eighth month, Brent crude oil has risen more than 70% this year, heading for a third consecutive monthly gain and further intensifying inflationary pressures.

Traders will continue to monitor the actual shipping volumes through the Strait of Hormuz. Before the conflict broke out, about one-fifth of the world’s crude oil and liquefied natural gas were transported via this strait. Trump stated that a "record amount" of oil was shipped out from the strait on Saturday night; Fars News Agency reported that Iranian forces had targeted vessels using unauthorized routes through the waterway.

Regional tensions also remain high. On Saturday, the Saudi-led Yemen coalition stated that its air defense systems intercepted a Houthi drone heading for Riyadh, as well as a missile targeting Khamis Mushait in the south. Alerts were also issued in Abha and Jizan, which host energy facilities of Saudi Aramco.