Iran's Seven-Day Plan to Reopen the Strait of Hormuz Rejected by Trump; Brent Crude Breaks Above $106

Iran insisted on a seven-day proposal to reopen the Strait of Hormuz, but the plan was rejected by U.S. President Donald Trump, potentially further delaying the reopening of the critical waterway. Brent crude rose above $106 a barrel, while U.S. WTI crude approached $94 a barrel. In an interview with Axios on Sunday, Trump said the terms proposed by Iran might have been acceptable to Washington about a year ago, but that Tehran is now overestimating its leverage. According to Axios, Trump expects negotiations to resume this week. Last week, oil prices swung sharply amid mixed diplomatic signals, the restoration of Middle East supply flows, and uncertainty over possible U.S. measures to curb record diesel prices. Trump said Washington is studying such measures "very seriously." As the U.S.-Iran conflict enters its eighth month, Brent crude has risen more than 70% this year and is on track for a third monthly gain, further intensifying inflationary pressure. Traders will continue to watch actual shipping flows through the Strait of Hormuz. Before the conflict erupted, about one-fifth of the world's crude oil and liquefied natural gas was transported through the strait. Trump said a "record amount" of oil moved through the strait on Saturday night; Fars News Agency reported that Iranian forces targeted vessels using unauthorized routes through the waterway. Regional tensions also remain high. The Saudi-led coalition in Yemen said Saturday that air defenses intercepted Houthi drones flying toward Riyadh and a missile aimed at Khamis Mushait in the south. Alerts were also issued in Abha and Jizan, where Saudi Aramco energy facilities are located.