Oil prices surge after Trump rejects Iran’s ceasefire terms, raising risks of prolonged Strait of Hormuz disruptions.
West Texas Intermediate crude futures climbed 5.2% to $96.60 in early Asian trading, reversing recent losses. The rally follows President Trump’s dismissal of Iran’s response to a US peace proposal as “totally unacceptable,” dashing hopes for a near-term ceasefire.
Iran’s demands include recognition of its authority near the Strait of Hormuz, compensation for war damages, and sanctions relief. The strait handles nearly 20% of global oil supply, and fears of prolonged disruptions have bolstered prices. WTI had previously pulled back below its 20-day EMA at $95.39 but regained bullish momentum.
Technical indicators support the upside, with the RSI at 52.45 signaling neutral to positive bias. Fed policy concerns, including sticky inflation and strong April jobs data, have had limited impact on the rally.