Iran Rejects Hormuz Softening After Trump Rebuffs Proposal

Geopolitical tensions in the Middle East intensified as Iran refused to soften its demands for reopening the Strait of Hormuz following President Trump's rejection of its proposal, driving Brent crude prices higher as trading opened for the week.

Brent crude climbed 1.3% to just below $106 a barrel as trading in Asia opened Monday following President Trump's rejection of Iran's latest proposal, according to market data and reporting by Bloomberg.

"Oil will come dropping down as soon as demand gives up, as soon as the war is over [which will be soon.] Oil is going to come plummeting down and oil prices are coming down," U.S. President Donald Trump said.

Official Reactions and Treasury Outlook

Iranian officials maintained their stance on the waterway negotiations while pushing back against Washington's economic pressure campaigns.

"President Pezeshkian and I did not come to New York to sell a war. We came to forge peace," Iranian Foreign Minister Abbas Araghchi said in a post on X.

Meanwhile, administration officials pointed to impending supply constraints stemming from ongoing sanctions enforcement against Tehran's remaining export channels.

"Probably within the next two weeks, they’re going to make their final delivery of oil to China and then they will have nothing," Treasury Secretary Scott Bessent said on Fox News' Sunday Morning Futures.

What Is at Stake for Global Energy Markets

The Strait of Hormuz remains a critical global transit choke point, handling a significant percentage of internationally traded petroleum. Disruptions to maritime traffic through the passage directly impact tanker shipping costs, supply chains, and global energy benchmarks as importing nations monitor regional security developments.